Mutual Fund and it's Details
What is Mutual Fund? Mutual fund is a type of investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities . It is managed by professional fund managers who allocate the fund's assets to generate returns for investors. Types of Mutual Funds Equity Funds (Invest in stocks) Debt Funds (Invest in bonds) Hybrid Funds (Mix of stocks and bonds) Index Funds (Track a market index like S&P 500) How a Mutual Fund Works? A mutual fund works by pooling money from multiple investors to create a diversified investment portfolio. Here's how it operates step by step: 1. Investors Pool Their Money Individuals invest in the mutual fund by purchasing units or shares of the fund. The money from all investors is combined to form a large capital pool. 2. Professional F...