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.