UNDERSTANDING MUTUAL FUNDS
What are Mutual Funds? In a mutual fund, money from many different investors is pooled and invested in short-term debt instruments like equities and bonds. The portfolio of a mutual fund is all of its investments put together. Shareholders are those who own mutual funds and have purchased shares, which entitle them to a percentage of the fund's assets and earnings. Why to buy Mutual Funds? Mutual funds are one of the best investment instruments to invest into because of the following features which they offer: - Professional Management : A group of professional fund managers take care of the fund performance based on detailed research. Diversified portfolio : "Don't put all your eggs in one basket," is a classic adage. The mutual fund investment follows the same general principle. Investing in mutual funds across a variety of industries and businesses lowers the chance of losing money even if one business fails. Affordability : For first investments and subsequent pu...