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| Investment
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| Mutual Funds
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| Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal.
Each scheme of a mutual fund can have different character and objectives. Mutual funds issue units to the investors, which represent an equitable right in the assets of the mutual fund. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
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| DEFINITION & SETUP OF MUTUAL FUND:In "Mutual Fund Book", published by Investment company of U.S.., "A Mutual Fund is a financial service organization that receives money from shareholders, invest it, earns returns on it, attempts to make it grows and aggress to pay the share holders cash on demand for the current value of his "investment". The investment managers of the funds manage these savings in such a way that the risk is minimized and steady return is ensured.
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Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 define 'Mutual Fund' as , "a fund established in the form of a trust to raise monies through the sale of units to the public or a section of the public under one or more schemes for investing in securities, including, money market instrument".
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| Mutual fund structure. |
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