Mutual Fund
A pooled investment vehicle, offering shares to investors for diversification.
Detailed Description
Mutual Fund
What is a mutual fund?
A mutual fund is a pooled investment vehicle managed by a professional fund manager, allowing multiple investors to invest in a diversified portfolio.
What are the main types of mutual funds?
The main types include equity funds, debt funds, hybrid funds, index funds, sector funds, and international funds.
How do mutual funds work?
Mutual funds pool money from investors, which is managed by a fund manager who makes investment decisions based on the fund's objectives.
What are the benefits of investing in mutual funds?
Benefits include diversification, professional management, liquidity, accessibility, and regulatory oversight.
What risks are associated with mutual funds?
Risks include market risk, credit risk, management risk, and liquidity risk.