Mutual funds are professionally managed investment vehicles that pool money from multiple investors to purchase securities such as stocks, bonds, and money market instruments. They offer diversification and expert management, making them an ideal choice for new investors.
Fund managers allocate pooled capital based on investment objectives. Investors receive units reflecting their share in the portfolio, and returns depend on the fund�s Net Asset Value (NAV).
Investors should evaluate fund performance, expense ratios, risk profile, and investment horizon. Long-term investment discipline enhances wealth creation potential.
Mutual funds democratize investing by offering accessible and diversified financial opportunities for beginners and seasoned investors alike.