Learning About MUTUAL FUNDS
What are MUTUAL FUNDS? So, Many of us have seen the ad "Mutual Subject to market risk read all scheme related documents carefully" but we lag in even basic understanding of it. First of all, we need to understand what Mutual Funds are and how do they work. A mutual fund is a type of financial vehicle made from a pool of investors to invest in stocks, bonds, money market and other assets. They are a good choice for someone not having market knowledge and doesn't know how to invest his money. How do they Operate? Mutual funds pool money from investing public. They have experts having knowledge of the current market. They invest public's money in assets like stocks, bonds and earn profit from it. Investing in Mutual Funds is different from investing in shares of stock. A share of Mutual Fund represents an investment in many assets instead of just one holding. A Mutual Fund company is both an investment company and an actual company. The value of the compan...