What is mutual funds?
Asked by Tanvi Last Modified
Follow 0 
Answer 
A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. While there is no legal definition of the term "mutual fund", it is most commonly applied to so-called open-end investment companies, which are collective investment vehicles that are...
read more A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. While there is no legal definition of the term "mutual fund", it is most commonly applied to so-called open-end investment companies, which are collective investment vehicles that are regulated and sold to the general public on a daily basis read less
0
Comments
Dr. Subhransu Sekhar Jena
Finance & Stock Market Expert, Entrepreneurship Skill in Broking, Portfolio Management, Algo Trading
A mutual fund is a pool of money from numerous investors who wish to save or make money just like you. Investing in a mutual fund can be a lot easier than buying and selling individual stocks and bonds on your own. Investors can sell their shares when they want.
0
Comments
A mutual fund is professionally managed investment pool of numerous investors, wherein the fund manager uses his/her discretion to actively manage the corpus with pre-determined mandate e.g. growth, income etc. Since the manager manages the entire fund as one investment, he buys same shares proportionately,...
read more A mutual fund is professionally managed investment pool of numerous investors, wherein the fund manager uses his/her discretion to actively manage the corpus with pre-determined mandate e.g. growth, income etc. Since the manager manages the entire fund as one investment, he buys same shares proportionately, worth whatever new money pours in daily and similarly sells proportionate amount of shares, for all the liquidation applications (redemption). This affects the Net Asset Value of the entire fund, and you as an investor get the benefit of any sudden heavy buying or suffer a drop due to heavy selling. Hence the name "Mutual Fund". read less
0
Comments
Mutual fund is a process in which Investors pool money with Fund Manager, Fund Manager invests this money in Marketable securities, Securities generates Returns, these returns are passed back to the Investors.
0
Comments
View 2 more Answers
Related Questions
What are derivatives? What is the use of derivatives? 
A derivative is a mutual agreement between two parties whose value is derived from an underlying asset. The asset might be Stock, Bond, Commodity, Currency etc. Risk Management is key benefit of Derivatives.
6 Is trading hard to learn?
It is not hard to learn. Think of trading like a graduation course. It takes lot of time to understand the markets. So as long as you spend the time observing, analyzing and understanding the stock market...
Which is the best segment to learn in stock market
Cash Market should be best to start with. Be an investor and not a trader as a beginner
Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com
Ask a QuestionRelated Lessons
Why only few Professional Traders become successful in Trading?
Dear All This is a serious note that very few Professional Traders became successful in Trading.I analysed this winning ratio from many years and finally shocked when I know the real fact. Most of the...
Remember FIVE D's before investment in securities like Equity, Mutual fund
1. Distribution -- Divide your investment amounts in small packets. It will decrease risk factor. 2. Divercification -- select security from different sectors. 3. Debt-Test -- Consider debt amount...
How do I know if a stock price is expected to rise in the future?
This is one of the most curious question in every beginners mind, You will feel amazed by some of the analysts seeing them giving future targets for any stocks and you will keep hitting you brain like...
What Is the Definition of Technical Analysis?
The study of financial market behaviour is known as technical analysis. The technician examines price changes that occur on a daily, weekly, or monthly basis, as well as any other period indicated in...
Never stop learning
Here is something very interesting finding about US market. Buying at the end of trading session, holding it overnight, and then selling it at the opening bell, which is also called Buy Today Sell Tomorrow(BTST),...
Find Stock Market Investing classes near you
Looking for Stock Market Investing classes?
Learn from the Best Tutors on UrbanPro
Are you a Tutor or Training Institute?
Join UrbanPro Today to find students near you
