Mutual Funds

Mutual Funds

A mutual fund is a collection of money from many investors, managed by a skilled fund manager. The fund manager uses this money to invest in different types of assets like stocks, bonds, and other securities. Since not everyone has the expertise to invest directly in the stock market, mutual funds offer a way for people to take part in the market without needing that specialised knowledge. These funds are great for investors who want higher returns but don't have the experience to invest on their own.

What is a Mutual Fund?

A mutual fund pools money from several investors to create a large investment fund.

How Does It Work?

An experienced fund manager invests this pooled money into securities such as:

• Stocks
• Bonds
• Money market instruments
• Other assets

Why Choose a Mutual Fund?

Many people lack the experience to invest directly in the equity market. Mutual funds provide an opportunity for individuals to access the market without expertise. Investors, both individuals and entities, can potentially earn higher returns.