A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature. Mutual Funds are simple to invest in with possibility of ‘lower investment reaping bigger gains’. Managed by Professional Fund Managers, Mutual Funds provide an opportunity to capture the highest possible returns of an entire segment of the market without having to buy and sell individual stocks and bonds.
Mutual Funds are professionally managed by fund managers who thoroughly track the market and trace the winning stocks and appropriate times to buy and sell.
Mutual fund agreements bind the issuer in buying back mutual funds unit on any dealing day, irrespective of the number of units you hold.
Before investment, investors get all information about the fund’s outlook and strategy and after investing, unit holders get regular updates on the value of the investment.
Mutual Funds have a default advantage of diversification, as fund managers invest across a variety of asset classes and stocks.