A professionally managed investment pool in which investors in the fund typically each have a pro-rata claim on the income and value of the fund. It is a pool of money managed by a professional Fund Manager.
It is a trust that collects money from a number of investors who share a common investment objective (who want the same outcome from the investment – safety/growth etc.). A Mutual Fund invests this money in equities, bonds, money market instruments and/or other securities. The profits or incomes (mainly dividend and interest) generated from this collective investment is distributed amongst the investors after deducting applicable expenses in the ratio of their investments.
March 17, 2021