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What is a Mutual Fund?
A mutual fund is a financial vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Professional fund managers handle these investments, aiming to generate returns for investors.
Benefits of Investing in Mutual Funds:
- Diversification – Reduces risk by spreading investments across a variety of assets.
- Professional Management – Experienced fund managers make investment decisions.
- Liquidity – Easy to buy and sell units, with most funds allowing redemption at any time.
- Low Entry Point – Start investing with a small amount, like through SIP (Systematic Investment Plan).
