What are MUTUAL FUNDS?????

INTRODUCTION

Mutual Funds are professionally managed investment Vehicles. Practically one does not invest in mutual funds but invests through mutual funds. 

Mutual funds are a platform to mobilize money from investors, to invest in different markets and securities, in line with the stated investment objectives. Through investing in a mutual fund, an investor can get access to equities, bonds, money market instruments, and/or other securities.

Role of Mutual Funds

The primary role of a mutual fund is to help investors in earning an income or build their wealth by investing in the opportunities available in securities markets. Mutual funds offer different kinds of schemes to cater to the need of diverse investors in the industry.

The money that is raised from investors ultimately benefits governments, companies, and other entities directly or indirectly for funding various projects or paying for various expenses. The income they earn helps them buy goods and services offered by other companies, thus supporting the project's overall economic development is thus promoted.

Mutual funds can also act as market stabilizers, in countering large inflows or outflows from foreign investors. Mutual funds are therefore viewed as a key participants in the capital market of any economy.