![]() The fund manager invests the collected funds in various financial instruments, such as equity stocks, debt instruments, derivatives, arbitrage, etc in order to generate returns for the portfolio holders. If an investor invests in a mutual fund scheme, s/he buys units of that scheme based on the Net Asset Value(NAV) of that fund on the day of transaction. ![]() Mutual funds are essentially a basket of many financial instruments that generate returns over a period of time. A professional and competent manager who has a sound knowledge of the financial market manages the fund, thus bridging the gap of layman’s knowledge of the financial world and that of an expert. The returns generated from the mutual fund investment are distributed proportionally among the investors. The total size of the mutual fund industry in India crossed Rs 28 lakh crore in January 2020. Each AMC will typically have several mutual fund schemes. ![]() Mutual funds are managed by Asset Management Companies (AMCs). A mutual fund is a pool of funds collected from multiple investors which invests in assets like stocks and bonds.
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