Mutual Fund: Overview
A
mutual
fund (MF)
is a professionally managed type of collective
investment scheme
that pools money from many investors i.e. your money and invests it in stocks, bonds,
short-term money market instruments,
and/or other securities to yield returns.
If you are apprehensive of investing in the stock market because of
its unpredictability, play relatively safe with MFs.
You will receive units of the MFs in proportion to the money put in. The value of each unit is also impacted when management fees and other expenses are deducted from the overall pool of funds.
The
value of a unit is called the Net Asset Value (NAV) of the MF which
changes on a daily basis.
Investors who wish to purchase or sell units of a mutual fund after the scheme is fully functional must do so at a price that is linked to the NAV or the Net Asset Value.
More gyan on MFs, here on Apnapaisa.
Mutual Fund: Basics
Mutual Fund: Opinion
Mutual Fund: FAQs
- What is a mutual fund?
- From where can we get information about Entry and Exit loads?
- Can a mutual fund alter the asset allocation while deploying funds of investors?
- When does an investor get a certificate or statement of account after investing in a mutual fund?
- How long does it take for transfer of units after purchase from stock markets in case of close-ended schemes?
- Is there a body that handles investor complaints redressal?
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