A mutual fund is a professionally managed Medium or vehicle that pools money from many investors and invests it in stocks, bonds, short-term money market instruments and other securities. Mutual fund is managed by professional managers who have deep knowledge and understanding of Stock Market, Bonds, money market.
who are Investors?
Investors who invest in MF are People like you and me who want to earn return on Investment. Companies registered in India, Partnership firms, Banks etc. also invest in Mutual Fund.
Mutual Fund House
MF House consists of Trustees and AMC i.e. Asset Management Company.
Trustees are responsible for ensuring that investors’ interest is properly taken care of. In return for their services, they are paid Trustee Fees.
AMC manages investments of MF House (Professional Managers) they charge Management fee.
