4 Replies to “what is mutual fund?”

  1. It’s an alternate to owning actual stocks.

    Owning a portfolio of 30+ different stocks is expensive. Most people can’t do it. A mutual fund owns all the stock and then you buy shares of the mutual fund. This gives you diversity at a much lower cost.

  2. Equity investment is the best form of investment capable of generating high yields over long period of time. However to reap the benefits of investing in stock market, one must have in depth knowledge and understanding of stocks to invest in. Besides, one should also be aware of stock market conditions, economic trends and balance sheets of the companies to invest in. Gaining this knowledge requires a lot of time, effort and patience. Not every one pull-off stock investments successfully.

    Mutual Funds – provide another avenue for people who don’t have enough time and knowledge to invest in stocks directly. Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in stocks of well researched companies. All the decision making by Mutual Funds is controlled by a well qualified investment manager supported by an army of experienced stock market analysts.

    Since all the decision making is done by qualified personals, the common man investing in Mutual Funds can reap the benefits of investing in Equity, without having to worry about buy/sell decisions day in and day out.


  3. the combination of more than one share called mutual fund. it is managed by fund manager, who is buying and selling share accordance to fund objective. any investor can buy and sell mutual funds at decraled NAV.

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