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The mutual fund is managed by a professional investment manager or a team of managers, who make decisions on behalf of the investors to buy and sell securities to achieve the fund's investment objectives.<br>For more details, please visit: https://www.bajajfinserv.in/investments/what-is-a-mutual-fund
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A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. The fund is managed by a professional investment manager or a team of managers, who make decisions on behalf of the investors to buy and sell securities in order to achieve the fund's investment objectives.
Investors in a mutual fund buy shares, and the value of these shares is determined by the net asset value (NAV) of the fund, which is calculated daily based on the market value of the fund's underlying assets. Mutual funds provide individual investors with access to a professionally managed and diversified portfolio, allowing them to invest in a broad range of securities without the need for direct ownership of each security.
There are various types of mutual funds, including equity funds (investing primarily in stocks), bond funds (investing in bonds), money market funds (investing in short-term, low-risk securities), and hybrid funds (combining different asset classes). Mutual funds are a popular choice for investors looking for diversification, professional management, and liquidity in their investment portfolios.