Mutual funds are a popular and convenient way to invest in the financial markets. They allow investors to pool their money and buy a diversified portfolio of securities, such as stocks, bonds, or other assets. Mutual funds are managed by professional fund managers who try to achieve the fund’s investment objectives and generate returns for the investors. Here, we have explained in a simple way, what exactly mutual fund is:
Like an investor invest 100000 (Rupees, Dollars and Euros and any other currency) in mutual fund scheme. Booked amount will be invested in upto 50 to 70 companies shares maximum, also depends on fund manager strategy of allocation of the funds. It will minimize the risk due to allocation of funds into vast range and also lower the cost of managing the funds for large number of investors.
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