What is a Mutual Fund

Posted on: 24 Dec, 2023

A mutual fund is an investment vehicle that pools money from a number of investors who share a common investment objective and then invests the same in securities like stocks, bonds, money market instruments, and other assets. The investors who invest in mutual funds are proportionate owners of the fund.

The gains or income generated from this collective investment vehicle is distributed proportionally to the investors after deducting applicable expenses and fees, based on the fund’s “Net Asset Value” (NAV).

To learn about different types of mutual funds, you may read this post.

You may read our guide on mutual fund investing if you want to learn more about mutual funds.

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  • Mutual fund, investing, saving, NAV