Mutual funds

Mutual fund is a type of investment fund that clubs investment from investors across the globe and procure securities. Mutual funds have a lot of difference than investing in individual securities.

 

Mutual fund investments focus around wide verities of products available in the market. So, it’s quite wide spread and involves lesser risk. They are usually managed by professional investors also called as portfolio managers.

 

Mutual fund investments however include various fees and charges and therefore may be costlier at times.

 

Conventionally, Mutual funds comprises all the followings:

 

Open-end funds

 

Closed-end funds

 

Unit investment trusts and

 

Exchange-traded funds (ETFs)

 

Mutual funds are also categorized based on its investments types, such as

 

Money market funds,

 

Fixed income funds (or Bonds)

 

Equity funds (or Stock) and

 

Hybrid funds

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