What are Mutual funds and why should you invest in Mutual Funds While You Are Still Young?
Mutual funds are currently one of the most popular investing solutions. A mutual fund is an investment vehicle formed when an asset management company (AMC) or fund house aggregates money from a number of individual and institutional investors that share similar financial goals. The pooled investment is managed by a fund manager, who is a finance professional. The fund manager invests in securities such as stocks and bonds that are consistent with the investing mandate. Mutual funds are an excellent way for individual investors to gain exposure to a professionally managed portfolio. You can also diversify your portfolio by investing in mutual funds, as the asset allocation will cover a wide range of instruments. Investors would be assigned fund units based on the amount invested. As a result, each investor will experience profits or losses that are directly equal to the amount invested. The fund manager's primary goal is to maximise returns for investors by investing in assets t...