Concept

♤ Mutual Funds refer to a pool of money accumulated by several investors who aim at saving and making money through their investment.

♤ The corpus of money so created is invested in various asset classes, viz. debt funds, liquid assets and the like.

♤ Just like gains and rewards earned over the period of investment, losses are also shared by all the investors in equal proportion, i.e. in accordance with their proportion of contribution to the corpus.

♤ Mutual Funds are registered with SEBI (Securities and Exchange Board of India) that regulates security markets prior to the collection of the funds from the investors.