Abstract :

Mutual Fund Is A Trust That Pools The Savings Of A Number Of Investors Who Share A Common Financial Goal. This Pool Of Money Is Invested In Accordance With A Stated Objective. The Joint Ownership Of The Fund Is Thus “Mutual”, I.e. The Fund Belongs To All Investors. The Money Thus Collected Is Then Invested In Capital Market Instruments Such As Shares, Debentures And Other Securities. Mutual Fund Is The Pool Of Money, Based On The Earnings Of Individuals Who Shares A Common Objective Of Having Financial Secured For Future Uncertainty As Well As Some Sort Of Financial Benefits Like The Capital Appreciation And Dividend Earning. The Money Collected From The Investors Is Then Relocated Or Invested In Capital Market Instruments Such As Shares, Debenture, And Various Foreign Markets. Investors Invest Money And Get The Units As Per The Unit Value Which Can Be Called As Net Assets Value (NAV). The Income Earned Through These Investments And The Capital Appreciations Realized Are Shared By Its Unit Holders In Proportion The Number Of Units Owned By Them. Thus A Mutual Fund Is The Most Suitable Investment For The Common Man As It Offers An Opportunity To Invest In A Diversified, Professionally Managed Basket Of Securities At A Relatively Low Cost. A Mutual Fund Pools The Money Of People With Certain Investment Goals. The Money Invested In Various Securities Depending On The Objectives Of The Mutual Fund Scheme And The Profits (or Loss) Are Shared Among Investors’ In Proportion To Their Investment. Investments In Securities Are Spread Across A Wide Cross-section Of Industries And Sectors. Diversification Reduces The Risk Because All Stocks May Not Move In The Same Direction 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 Investment. The Mutual Funds Normally Come Out With A Number Of Schemes With Different Investment Objectives Which Are Launched From Time To Time. A Mutual Fund Is Required To Be Registered With Securities And Exchange Board Of India (SEBI) Which Regulates Securities Markets Before It Can Collect Funds From The Public

Published:

11-7-2026

Issue:

Vol. 26 No. 7 (2026)

Page Nos:

457-465

Section:

Articles

License:

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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