Mutual Funds Investment Planning: What is Mutual Fund
A mutual fund is a financial vehicle that pools money from a group of investors to invest in a diversified portfolio of stocks, bonds, or other securities. It is managed by a professional fund manager, employed by an asset management company (AMC), which could be a bank, brokerage, or a dedicated asset management firm. Purpose: The primary goal of a mutual fund is to provide investors, both small and large, with a professionally managed and diversified investment option. This appeals to individuals who may lack the expertise or time to manage their investments actively. Capital Pooling: Investors buy units or shares of the mutual fund, and their money is combined with the funds of other investors. This pooled capital is then strategically invested by the fund manager in various financial instruments. Mutual Fund Structure: Demat Account Not Required: Unlike direct stock market investments, investors in mutual funds don't necessarily need a Demat account. The fund manager takes ca...