What is a Mutual fund ? Many people think this as a complicated subject and they stay away from knowing. we will learn today in simplified terms Mutual fund is a trust which pools money from different investors and invests in equities , bonds , money market instruments . Each investor gets some units after investing and gains/losses are distributed proportionately amongst investors after certain fund expenses which is called as NAV(Net Asset Value) . Mutual fund is most available investment option to a common man as it offers liquidity , diversification , professional management and one start investing in mutual fund with as low as 500/- . Benefits Liquidity : Unlike other asset classes (Gold , property) Mutual funds have huge liquidity and one can sell their units at anytime when they require money. Diversification : Mutual funds invests in different stocks for diversification between various sectors , styles etc. It can also invest in other assets...
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