Define Mutual fund. (RBSE)
Answers
Multi-fund Law and Legal Definition. Multi-fund is a mutual fund that invests in a range of other mutual funds. The aim of a multi-fund is to diversify risk and the potential returns. It reduces an investor's risk by offering greater diversification than would be obtained by investing in only one mutual fund.
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Answer:
To many people, Mutual Funds can seem complicated or intimidating. We are going to try and simplify it for you at its very basic level. Essentially, the money pooled in by a large number of people (or investors) is what makes up a Mutual Fund. This fund is managed by a professional fund manager.
It is a trust that collects money from a number of investors who share a common investment objective. Then, it invests the money in equities, bonds, money market instruments and/or other securities. Each investor owns units, which represent a portion of the holdings of the fund. The income/gains generated from this collective investment is distributed proportionately amongst the investors after deducting certain expenses, by calculating a scheme’s “Net Asset Value or NAV
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