Mutual funds provide a collective investment platform, enabling a group of investors to pool their funds and access a diverse range of investment instruments. By purchasing shares in a mutual fund, investors benefit from professional money management. Fund companies gather capital from shareholders and strategically allocate it to various individual investment instruments based on factors such as risk profile, money management philosophy, and financial goals. The resulting profits or losses are then distributed among the fund’s shareholders.

An increasing number of individuals are recognizing mutual funds as a viable investment option. Amidst traditional choices like fixed deposits and real estate, mutual funds are gaining popularity as a lucrative avenue for savings and investments. While it has become a highly sought-after investment method, lacking sufficient knowledge may impede one’s ability to fully embrace mutual funds. To address this, we aim to provide a concise overview of everything you need to know about mutual funds and the associated benefits.