Mutual Funds

What does it mean?

A mutual fund pools together the money from investors and invests it on their behalf. The money is usually invested in stocks, bonds, money market instruments and so on.  Mutual funds are a recommended option for individuals who are not too familiar with the concept of  investing. 

Points to remember

• The returns (capital gains) gained from the mutual funds are distributed proportionately among the investors.
• Individuals can check the investment objectives of all mutual funds and choose the one that suits their own financial objectives.