Question

mutual funds definition

Answer 1

an fund operated by an investment company that gets money from shareholders and invests in a group.

Answer 2

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Mutual funds are financial intermediaries which mobilize savings from investors, particularly the small investors and invest them in government ans other corporate securities. They serve as a link between the investors and the securities market.

• According to Bharti V. Pathak, “A Mutual Fund is a Financial Service Organization that receives money from shareholders, invests it, earns return on it, attempts to make it grow and agrees to pay the shareholders. Cash on demand for the current value of his investment”.

• According to Chandra Prasanna, “Mutual Fund is called unit trust or open-ended trust – a company that invests the fund of its subscribers in diversified securities and in turn issues units representing shares in those holdings. They make continuous offering of new shares at net asset value and redeem the shares on demand of net asset value determined daily by the market value of the securities they hold”.