What is a mutual fund?

Answer 1

From Wikipedia:
A mutual fund is a form of collective investment that pools money from many investors and invests the money in stocks, bonds, short-term money market instruments, and/or other securities. [1] In a mutual fund, the fund manager trades the fund's underlying securities, realizing capital gains or loss, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value (NAV), is calculated daily based on the total value of the fund divided by the number of shares purchased by investors.

Answer 2

I'm sure you've got your answers by now, but you can spare two min to read this as well.

If you want to invest in the stock market, but dont know when or what to buy, invest in a mutual fund. It will invest your money depending on the investment objectives of the fund. Say, for example, you want to invest in the property sector, as you feel that it will boom in the coming years but you are unsure of which property stocks to buy. The wisest decision is to invest in a property fund which will invest your money in the real estate sector.

MF's have different risk structures, depending upon their composition. An Aggressive Equity fund (one that invests only in equities) is considered to be most riskiest, for example.

MF's are also structured from country to country..so in India they are constitued as Trusts, while in the UK they are in the form of OEICs( Open Ended Investment Companies)

There is a lot to tell about MF's. It would be better if you be slightly more specific in your question. Hope this helps

Answer 3

a commpany creats a large fund through collecting from public and invest in diffarent types of instruments like bond, treasury bills, govt. securities & stocks and shares, they professionals who have expertise to manage fund. whatever the profit or loss generated by a fund is ditributed equaly to he fund, the company charge investor for their services. there are several compay available in the market. invetor can choose the copany and fund according to their needs and investment apptite.

Answer 4

A mutual fund is when you have a company that pools together your money and purchase stocks and bonds on your behalf.

Answer 5

way to invest money issued by any company you can say it life policy. these are issued for ten or twenty years

Answer 6

companies invest variety of stocks for you, you invest the company which does that for you.

Answer 7

life policy