what is Mutual Fund?

What is Share?
What is Equity?
Compare the Mutual funds with Shares and Equits
Please give me the clear differences amog these.
In what situations we will go for these?

3 Replies to “what is Mutual Fund?”

  1. A share is a share of ownership, a piece. You own shares of an individual stock or a mutual fund.
    A mutual fund is a group of individual investments managed by a fund manager. It supposedly spreads the risk over more than a single stock.
    Equity is your ownership.

  2. Mutual Fund is the scheme in which people give money to a professional organization to invest in the share market without the need to constantly keep a watch on the share prices themselves.

  3. 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.

    SHARES:A share represents ownership of part of a company. Shares in companies that are listed on a stock exchange can be bought or sold at the prevailing market price

    EQUITY: The ownership interest of shareholders in a corporation. A synonym for shares. Equity also refers to the after-debt value of an asset.

    In mutual funds, a fund house is investing on your behalf. In share market you are directly investing into the secondary market.
    The risk assosiated with mutual funds is much less as compared to investment in shares.

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