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Mutual Fund Basics
  • A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal.
  • The money thus collected is then invested in capital market instruments such as shares, debentures and other securities.
  • The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them.
  • Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
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