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A mutual fund is an investment strategy which is funded by the shareholders who trade in professionally managed diversified holdings. It is called a ‘mutual’ fund because all risks, rewards, gains or losses pertaining to or arising from the investments made out of this savings pool are shared by all investors in proportion to their contributions. Mutual Fund Companies are registered under SEBI (Securities Exchange Board of India) which approves the Asset Management Company (AMC) to manage the fund.
Mutual funds are a good option to invest money for growth due to low risk on capital gains. Below are some important benefits of mutual fund benefits.
Here is the list of individuals who can invest in Mutual Fund schemes.