A mutual fund is a professionally managed trust that pools the savings of many investors and invests them in securities like stocks, bonds, short-term money market instruments and commodities. Investors in a mutual fund have a common financial goal and their money is invested in different asset classes in accordance with the fund’s investment objective. Investments in mutual funds entail comparatively small amounts, giving retail investors the advantage of having finance professionals control their money if it is a few thousand rupees.
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