1) What is Mutual Fund?
→ A mutual fund is the trust that pools the savings of a number of investors who share a common financial goal.
→ Anybody with an investible surplus of as little as a few hundred rupees can invest in Mutual Funds.
→ The money thus collected is then invested by the fund manager in different types of securities. These could range from shares to debentures to money market instruments, depending upon the scheme’s stated objective.
→ It gives the market returns and not assured returns. In the long term, market returns have the potential to perform better than other assured return products.
→ Mutual Fund is the one of the most cost efficient financial products.

2) Why should I invest in mutual funds?
Mutual funds offer benefits like:
→ Professional Management
AMC appoints qualified and experienced fund managers for each scheme who monitor the market and work towards generating optimum returns for unitholders in line with the objective of the scheme.

Read more: Importance of Mutual Funds