What is Mutual Fund
A pool of money collected from many investors to invest in different sectors like stocks, bonds, money market instruments or other assets is called mutual fund which is managed professionally by experienced managers. Mutual fund is generally famous in investment sector. In 1924 1st mutual fund was established and offered by MFS investment management. It’s operated by the professional’s money managers who are skilled in allocating the fund’s assets and attempting to produce capital gains or income for the fund’s investors.
Its mutual fund which allows a small individual investor to invest in gigantic investing field like bonds, equities or other securities and gain more profits! Each shareholder or participators gain or loss the money proportionally. Investing a lot of securities and preforming in the total market cap of the fund, mutual fund is derived by the aggregating performance of the underlying investments.
KEY TAKEWAYS-
- A pool of money that is collected from many investors
- Invest in stocks, bonds or money-making investment site
- Operated by professional managers
- Great way to invest money in a gigantic site
- Divided profit end of month proportionally
- Maintenance fee 1-2% only
- Can be invested by anyone who is owned minimum investment
Here are some common categories of mutual funds –
Debt funds - funds that invest only in fixed income instruments