What is a Mutual fund and How Does it Actually Work? [Video]

In this video, we will discuss what is Mutual Fund, how it actually works, and the pros and cons.

What is a Mutual fund?
Mutual Fund is an Investment product that accumulates funds from a large number of investors and buys different assets like stocks, bonds, and equities. The returns are distributed to the investors based on their risk appetite.

Things to note before investing in a mutual fund
– The fees involved
– The type of return
– Net Asset value
– Prospectus
– Expense ratio

Benefits of mutual fund
– Wonderful opportunity to invest for fixed or mid-income population
– Affordability due to SIP options
– Offers greater liquidity
– Reduced tax liability
– Suitable for long term investment

Drawbacks of mutual fund
– Subjected to market fluctuation
– Make sure to invest based on the risk appetite
– Improper investment may result in heavy losses
– Time consuming to provide greater results.

For more details, you can refer to our article – https://www.wallstreetmojo.com/mutual-funds/

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