Mutual funds diversify the portfolio across companies and sectors to reduce the risk because all stocks may not move in the same direction and in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as Unit Holders. The profits or losses are shared by the investors in proportion to their investments. Mutual Funds normally come out with a number of schemes with different investment objectives, which are launched from time to time.
At the end of this course, you would be able to understand :-
- Mutual funds
- Formation and Setup of mutual funds
- Classification of Mutual funds
- Various Mutual Fund Schemes
- Net Asset Value (NAV)
- Compare Mutual Fund Schemes