A Mutual Fund pools the savings of a number of investors and invests the same in a variety of different financial instruments. The income earned through these investments and the capital appreciation realized by the schemes is shared to the unit holders or investors in proportion to the number of units owned by them. Mutual funds can thus be considered as financial intermediaries in the investment business that collect funds from the public and invest on behalf of the investors. The losses and gains accrue to the investors only. Mutual Funds invest in various asset classes like equity, derivatives, bonds, debentures, commercial paper and government securities as per scheme offer document.

Hello Investor Changed status to publish January 9, 2019