Simply put, a mutual fund is a financial intermediary that enables a group of investors to pool their funds with a specific investment goal. The pooled funds will be invested by the mutual fund's fund manager into particular securities. Because they are very cost-effective and simple to invest in (you don't have to decide which stocks or bonds to buy), mutual funds are among the best investments ever made.
A mutual fund is a group of investors' holdings of stocks, bonds, or other securities that are overseen by a seasoned investing firm. It can be challenging for an individual investor to have a diverse portfolio. Individual individuals can invest in both debt and equity assets at the same time with the aid of mutual funds. Investors become the unit holder of the relevant units when they invest a certain amount in mutual funds. Mutual funds then invest the money from unit holders in stocks, bonds, or other interest- or dividend-bearing instruments. The holders of the units receive this money. The unit holders are eligible to receive capital gains if the fund makes money by selling some stocks at a higher price.
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