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Answer Posted / bharat khatri
Mutual Fund, as the name suggest, Mutual- Collective Fund-
Money. It is a collection of fund which is invested in the
market to get better results. Many smaller invester invest
their money with the Mutual Fund company or the Asset
Management Company (AMC)and these companies use to invest
the pool of money in different sectors to earn profit and
then distribute this profit to the investors.
It is a low risk or you can say a safer investment as your
money has been invested in the market by a well managed or
well informed Fund managers. In this investment one is not
require to time the market as all the pain is been taken by
the fund manager.
On of the most important feature of M.F. is diversification
of the portfolio.
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