Mutual fund is a process of pooling resources from the investors and investing funds in securities. The process of pooling the resources together and issuing units to the investors and then investing funds in securities is known as the scheme of “Mutual Funds”.
In other words, it works like a trust which pools the savings of investors and invests these in capital and money market instruments. Mutual funds offer good investment opportunities to the investors. Like all investments, they also carry certain risks.
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