Mutual funds is an investment vehicle that is made up of a collection of funds from different investors for the purpose of investing in securities such as bonds, stock market, money market instruments and similar assets.
ADVANTAGES OF MUTUAL FUNDS
- Investment in mutual fund schemes entitles the investor to avail tax credit that enhances the overall return on their savings.
- Mutual funds accommodate investors who do not have a lot of money to invest by setting relatively low Rupee amounts for initial purchases and subsequent monthly purchases.
- Mutual fund unit holders can readily convert their units into cash on any working day.