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Mutual
Fund School
Mutual
Fund Concept
Mutual Fund Organisation Mutual Fund Advantages Mutual Fund Types Mutual Fund FAQs Mutual Fund News |
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Concept of Mutual Fund A
Mutual Fund is a trust that pools the savings of a number of investors
who share a common financial goal. The money thus collected is then
invested in capital market instruments such as shares, debentures
and other securities. The income earned through these investments
and the capital appreciation realised are shared by its unit holders
in proportion to the number of units owned by them. Thus a Mutual
Fund is the most suitable investment for the common man as it offers
an opportunity to invest in a diversified, professionally managed
basket of securities at a relatively low cost. The flow chart below
describes broadly the working of a mutual fund: |