What is Mutual Fund?

A mutual fund is an entity that pools the money of many investors -- its unit-holders -- to invest in different securities. Investments may be in shares, debt securities, money market securities or a combination of these. Those securities are professionally managed on behalf of the unit-holders, and each investor holds a pro-rata share of the portfolio i.e. entitled to any profits when the securities are sold, but subject to any losses in value as well.

Advantages

  • Professional Investment Management
  • Diversification
  • Low Cost
  • Convenience & Flexibility
  • Personal Service
  • Liquidity
  • Transparency