A mutual fund is a pool of money collected from number of investors having a common investment objective is managed by a team or fund manager
The Money is used to invest in various shares in equity market as well as in Govt Bond, or money market instruments. The gain generated from the collective investment is distributed proportionately among the investor after deducting permissible expenses and levees by “calculating net asset value” or NAV.
Mutual fund is constituted as trust. Therefore they are governed by the Indian trust act 1882. This trust is created by one or more sponsors who are the main person behind this Mutual Fund business. Every trust has its beneficiaries and in mutual fund case the investors are the real beneficiary who invests in different schemes of mutual fund.
Subscribe to My Smart Investment "MUTUAL FUND" by Email
No comments:
Post a Comment