Applications Of Some Key And Basics Terms Of Mutual Funds

Mutual funds are one of the popular investments for many types of investors because; mutual funds offer a best convenient, cost-effective and simplest way to invest money in the financial markets. The Mutual Fund is a trust that pools, collects the small savings of a large number of investors who share a common financial goal i.e. to earn profits. So, the money collected, is invested in capital market, share markets instruments such as debentures, shares and other securities. These all securities are often referred to as the holdings and all of the fund's holdings combined make up the investment portfolio. The earnings earned through such investments and the capital appreciation realized is shared by its all the unit holders in proportion to the number of units owned by them for the specific periods.