“What is Mutual Fund?” This might be your thought whenever you see ads stating that “Mutual Fund Sahi Hai” (meaning mutual fund is right). Is Mutual Fund, actually right? This can be properly understood only when you know all about mutual funds. So, let us understand about Mutual Fund! What are Mutual Funds? A mutual fund is a trust that pools the money collected from many investors who share a similar financial goal. This pool of money is then invested in different financial instruments. The profit generated from these investments is then divided among the investors. Let us understand this with the help of an example! Think of Mutual Fund as a Pizza. You want to have a pizza, but you don’t have enough money. Say, the pizza’s price is Rs.1000 but you have only Rs. 400. Now, you are forced to quit your desire to eat pizza. But think of a situation when you and some of your friends contribute some amount to buy and eat pizza together. Similarly, in Mutual Funds, you and ...
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