Mutual funds are investments which pool savings from a number of investors under a particular scheme managed by an asset management company (AMC). The pooled money from Mutual Funds is then invested in securities like equity shares, bonds according to the scheme.
The fund manager manages the investment portfolio as per the market situations in order to create wealth for investors. The company charges an annual fee called expense ratio from the investors to manage their portfolio.
The Mutual Fund investors usually make money by way of regular dividends/interest and capital appreciation. The investor can even decide whether to reinvest the...