Mutual Fund is an open-end professionally managed investment fund that pools money from many investors to purchase securities. Mutual fund investors may be retail or institutional in nature. The term is typically used in the United States, Canada, and India. Mutual Funds are really beneficial for any investor, retail or otherwise. By investing as little as Rs. 1000 per month, you get host of benefits: All this and also the chances of getting good returns for the various types of schemes that are available. As an investor, you can buy mutual fund ‘units’, which basically represent your share of holdings in a particular scheme. These units can be purchased or redeemed as needed at the fund’s current net asset value (NAV). These NAVs keep fluctuating, according to the fund’s holdings. So, each investor participates proportionally in the gain or loss of the fund.
All the mutual funds are registered with SEBI. They function within the provisions of strict regulation created to protect the interests of the investor.
The biggest advantage of investing through a mutual fund is that it gives small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital.
