Get to know how mutual fund account works

  • A Mutual Fund is a vehicle to mobilize money from small investors.
  • Mutual Funds helps you to invest in different markets & securities as per the investment objectives.

Simply it is a way for a small investors to invest with a professional fund

How do mutual fund account work in India?

  • Mutual Fund schemes announce their investment objective and seek investments.
  • Money is invested is translated into a number of units that the investor owns.
  • Mutual Fund managers invest in time with the investment objectives agreed upon.
  • ¬†Mutual Funds earn interest income or dividend income on the investments it holds or makes gains/losses when it purchases and sells investments.
  • Profit or loss, As the case might belong to the investors.
  • An investor can sell units owned in the mutual fund to liquidate his investment.