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Meaning of Mutual funds A trust that gathers funds from various investors with a shared investing goal. The money is then invested in stocks, bonds, money market instruments, and other securities. Units, which reflect a portion of the funds holdings, are owned by each investor. By establishing a
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FAQ :
A mutual fund is a trust that collects money from various investors with a shared goal and invests it in assets like stocks and bonds. Investors own units that reflect a portion of the fund's holdings, and income is split proportionally after fees.
Mutual funds are ideal for individuals who have limited funds, lack the time or interest to research the market, but still wish to grow their money through professional management.
Mutual funds offer diversification across various financial options, allowing investors to participate in capital markets and potentially profit from uptrends, with schemes tailored to different financial objectives.
AUM stands for Assets Under Management, which is the total market value of investments that a person or entity manages on behalf of clients. It's often seen as a positive indicator of a fund's quality and management experience.
Mutual funds can be broadly categorised as open-ended or closed-end, and actively or passively managed. Specific types include Equity Funds, Fixed Income Funds, Index Funds, Balance Funds, and Money Market Funds.
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