Mutual Fund, Type Of Service Contract Whole Life, Type Of Fund Investement Systematic Investment Plans

A mutual fund represents a vehicle that enables a collective group for individuals to engage in a. Pool their investible surplus funds and collectively invest in instruments / assets for a common investment objective. B. Optimize the skills and know-how of a fund manager, A capacity that individually they may not havec. Enjoy the advantages of the economies of scale which size enables and is not available on an individual basistypical classification of mutual fund schemes on various basis allocating resources to a mutual fund is like an investment made by a collective. An individual sold separately investor has a strong chance of have lesser quantity of currency at disposal a collection, Than say of friends let s, Put together. Now assume that this group of individuals is a novice in investing and so the group turns over the pooled funds to an expert to develop their money work for them[What you have here is] what a professional asset management company does for mutual funds. The amc invests the investors money on their behalf into various assets towards a common a mutual, Technically speaking, Investment objective. Hence fund is an investment vehicle which pools investors money and invests equivalent for and on behalf of investors, Into stocks, Bonds, Money market instruments and other assets. The money is received by the amc with a promise that it will be invested in a designated manner by a professional manager commonly known as fund managers . The investment leaders are expected to honour this promise. The sebi and the board of trustees ensure that this actually happens.