Introduction to Mutual Fund


There are various way of investment but investment in mutual fund becomes more popular from last 20 years. Do you know that about more then 85 million people or half of the house hold in America Invest in mutual fund. Investment in mutual fund have no high risk like stock market a it is professionally managed by fund managers who have strong knowledge in Investment in Stocks, Bond etc.

Before Investing In Mutual Fund You should have knowledge of following points.

  1. What Is Mutual Fund ?
  2. What Is Different Types Of Mutual Fund ?
  3. How To Invest In Mutual Fund
  4. How To Choose A mutual Fund For Investment?
  5. What Is NAV (Net Asset Value)
  6. What Is SIP(Systematic Investment Plan)
  7. What Is Advantage & Disadvantage of Investing In Mutual Fund.


What Is Mutual Fund ? : 

  • A mutual fund is collection of securities like stock, bond, short term money market instrument etc. You can think mutual fund is a company which forms a groups of people and invest their money in securities like stock, bond, short term money market instrument etc. Each Investor owns a portion of holding funds.


  • A Mutual Fund is an Investment company which is professionally managed by a fund manager that invest on behalf of a group of investors in various securities like stock, bond, short term money market instrument etc. Fund managers have strong knowledge in financial products and they manage investment of  investors.

How money Increase In mutual fund ?

  1. Mutual fund raise their money by getting dividend on stocks and interest on bods .
  2. Mutual Fund also sales securities which have increment in price.
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