What is Mutual Fund?

What is Mutual Fund.

4 Answer(s)


Mutual fund is a vehicle by which even people who are not expert in stock market can participate in it with having low risk exposure compare to direct investing in share market


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.


Mutual fund is an investment programme funded by shareholders that trades in diversified holdings and is professionally managed.


It takes the money of several investors and invests this in stocks, bonds, money market instruments and other types of securities.

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