A Mutual Fund is a collective investment product formed to raise money from many individuals and invest it according to pre-specified investment objectives. The benefits of a mutual fund scheme are shared among all the investors in proportion to their investments.
Mutual funds are the most popular among individual investors. This is because it gives the benefit of an instant diversification of investments.
Mutual funds invest in investment products like equity, bond, money-market securities, real estate, alternate asset classes, commodities, etc.
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