A Look at Mutual Funds

I have come across various interviews where they ask about Mutual Funds & the way they work. The following article would help you get an insight in what they really are.   

What are Mutual Funds ?  

Mutual Funds refers to a fund established in the form of a trust by a sponsor  to raise money through one or more schemes for investing in securities. It is a special type of investment institution, which acts as an investment intermediary that collects money from a large number of people restricted to have a common objective to achieve. A fund is hosted by a fund manager or a team of well experienced bankers who form a diversified portfolio for attaining the objective.