People nowadays want new methods to invest and gain profit in the far and near future. Everyone in the country, even out the country, is conscious and careful about their future goals.
Mutual Funds are the most commonly known one of these investments. It is a series of money investment vehicles which collects money from many investors and invests it in securities such as stocks, bonds, short term debt and other assets managed by professional fund managers. The combined holdings of the mutual fund are known as its portfolio.
Investors buy shares in mutual funds and each share represents an investor's part ownership in the fund and the income it generates. Mutual Funds benefit us in more than one way as they offer features such as professional management, diversification, affordability and liquidity.
The biggest advantage of investing through a mutual fund is that it gives small investors access to professionally managed portfolios of equities, bonds and other securities having a small amount of capital. Investors are allotted units proportional to their investment and that is calculated on the basis of NAV (Net Asset Value). It is the price at which investors buy or redeem their mutual fund investments.
