Types of Mutual Funds
Mutual Funds can be categorized on the basis of Asset Class, Types of Securities Opted, Investment Goals, Risk Factors, and so on.
Mutual Funds
Mutual funds are investment vehicles that pool money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities managed by a professional investment manager. When an individual invests in a mutual fund, they’re purchasing shares of the fund, and the value of those shares is based on the fund’s net asset value (NAV), which is calculated at the end of each trading day. The portion of holding of the fund is provided as ‘Units’ to each investor in proportion to the amount invested by them. The income generated from the scheme is distributed among all the investors in proportion to their investment, by calculating Net Asset Value or NAV.
Table of Content
- Know the Basics of Mutual Funds
- Types of Mutual Funds
- Difference between Various Mutual Funds
- How do Mutual Funds Work?
- Frequently Asked Questions (FAQs on Mutual Fund)