A mutual fund is an investment vehicle that pools money from multiple investors and invests it in a diversified portfolio of assets such as stocks, bonds, and other securities. It is professionally managed by a fund manager.
A simple way to invest your money across different assets without managing each investment yourself.
Mutual funds collect money from many investors and combine it into a common investment pool. The collected money is then invested according to the fund's investment objective.
A professional fund manager manages the portfolio and decides which securities to buy, hold or sell, based on the fund's strategy.
Investors receive units of the mutual fund based on the amount they invest. The value of these units changes according to the value of the underlying investments.
Mutual funds offer several features that make investing accessible to different types of investors.
Your investment can be spread across multiple securities, helping reduce dependence on a single investment.
Experienced fund managers manage the portfolio according to the fund's stated investment objective.
Investors can choose options such as lump-sum investment or Systematic Investment Plans (SIPs).
Many open-ended mutual funds allow investors to redeem their units subject to applicable conditions.
Depending on the type of fund and market conditions, investments may provide long-term growth potential.
Different types of mutual funds can be selected based on investment goals, time horizon and risk profile.
The process is simple and involves pooling, investing and managing money on behalf of investors.
Investors invest money in a selected mutual fund scheme.
Investments from multiple investors are combined into a common pool.
The fund manager invests the pooled money according to the scheme's objective.
The value of the investment changes based on the performance of the underlying assets.
Access to a diversified portfolio
Professional portfolio management
Option to start investing through SIPs
Multiple schemes for different financial goals
Can start with relatively small amounts
Convenient and transparent investment structure
