Mutual Fund

Mutual fund is a financial instrument that pools money from different investors. The pooled money is then invested through a Fund Manager with a common objective in the securities market like stocks of listed companies, government bonds, corporate bonds, and money market instruments.

The ultimate aim of investing in mutual funds is to build wealth in the long term but investing for a fixed tenure by understanding the risk and reward associated with it.

Mutual funds play a vital role for people who are not aware of direct investment in the stock market, as an expert team (fund managers) decides based on the research and the pre-defined structure of the fund.