What is a Mutual Fund?

"Mutual fund investments are subject to market risks. Please read all the scheme related documents carefully before investing"

This phrase that we often hear, reduces our interest in mutual funds and clouds our mind with fear of losing money. However, there is a lot more to mutual funds than this statement alone and here, we attempt to simplify them!

Mutual Fund = Mutual (Group of people coming together) + Fund (Pooling of money)

• Essentially, a mutual fund is a professionally managed collective investment instrument that pools or collects money from multiple investors and invests it into different securities like shares, bonds and other assets.
• It lets the investors decide when to start, when to withdraw, how much to invest etc. without having any prior knowledge about the markets.

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