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Mutual Fund
What is Mutual Fund ?
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What is Mutual Fund ?
Mutual Fund is a vehicle that enables a collective group of individuals to:
a.) Pool their investible surplus funds and collectively invest in instruments / assets for a common investment objective.

b.) Optimize the knowledge and experience of a fund manager, a capacity that individually they may not have

c.) Benefit from the economies of scale which size enables and is not available on an individual basis
Typical classification of mutual fund schemes on various basis:

Investing in a mutual fund is like an investment made by a collective. An individual as a single investor is likely to have lesser amount of money at disposal than say, a group of friends put together.

Now, let's assume that this group of individuals is a novice in investing and so the group turns over the pooled funds to an expert to make their money work for them. This is what a professional Asset Management Company does for mutual funds. The AMC invests the investors' money on their behalf into various assets towards a common investment objective.