Many queries have been coming along regarding investments in mutual funds and stocks. What is Mutual Fund? It is where a group of investors invest money for a common cause. The funds thus invested are used by professional money managers to invest in various beneficial investment plans to get adequate returns. The person who unites various investors are known as Unit owners.
The funds received thus are the sole responsibility of the unit managers. With appropriate market research they invest the money in various money market instruments like stocks, shares, debentures, gilts etc. The greatest advantage is that the unit mangers conduct ample research before investing in the best financial securities. It is a decision taken by a group of people rather than a single individual. Hence risk involved is comparatively very less.
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