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Community User Posted on 11:44am 21-Dec-2019

What is the concept of mutual fund and how does it work?

Mutual fund is an investment vehicle which collects the money from various investors, give it to the professional fund manager and fund manager invests as per the predefined objective in different asset classes. Return generated from the investment is distributed among the investors in the proportion of their investment amount after deducting the fund management and other expenses.

Mutual fund is the easiest and common method used by investors to manage their fund in a professional manner by paying the fee in the form of expenses. This is similar to take the services of a specialized doctor by paying the consultation fee to manage the health.

 

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