What is mutual funds?

Question

What is mutual funds?

Answer 1

Mutual funds are managed by Fund managers appointed by the  fund houses.  The capital is raised from the public and then it is invested in various instruments like equities, debts etc.  The profit earned out of this investment will be distributed to the individual investors.

Answer 2

A mutual fund is a pooling of investor (shareholder) assets, which is professionally managed by an investment company for the benefit of the fund's shareholders. Each fund has specific investment objectives and associated risk.

Answer 3

A mutual fund is a professionally managed firm of collective investments that collects money from many investors and puts it in stocks, bonds, short-term money market instruments, and/or other securities.  The fund manager, also known as portfolio manager, invests and trades the fund's underlying securities, realizing capital gains or losses and passing any proceeds to the individual investors. Currently, the worldwide value of all mutual funds totals more than $26 trillion.

Answer 4

mutal funds are of different types

in short they are professionally managed funds of people, they pool the resource's from general people and buy equities

instead of you buying and selling shares individually to subscribe to a mutual fund scheme and they do the same for you

check this website for more indept knowledge

http://www.mutualfundsofindia.com/

Answer 5

Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document.

Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unitholders.

The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securities markets before it can collect funds from the public.

Answer 6

Mutual funds collect money from people like you and me and invest in equity ot other investments. They invest in shares , money markets and other investments. They are run by experts who manage the fund for you.

Answer 7

Hi.

♥When you buy "mutual funds" from a company, they invest your money in different sectors of the economy.

♥See, when you buy shares, your money is invested in just one place, for example, Reliance shares. You'll profit only if Reliance profits.

♥But if you buy mutual funds, your money goes to different places; if in one place your money doesn't work, you still have hopes from profits from other places, where your money is invested.

♥In mutual funds, the risk is spread over, risk is 'less'.

♥They are better than shares....

♥And the name suggests, "MUTUAL" means, combined..... your money goes to various places..... and has better opportunities.

Hope it helped. Thank you. All the best.