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1. what is the concept of mutual fund 2. list the functions of mutual fund

1. what is the concept of mutual fund
2. list the functions of mutual fund

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Answer #2

1. Mutual funds are funds which are managed by experts in return for a fees charged by them. In case of the investors who are not very knowledgeable to invest directly in stocks, they invest with the help of mutual funds which helps them earn a return on their investment with the help of professional management. Large number of investors can diversify their investments by holding mutual funds.

2. Functions of mutual funds are :

  • They help to mobilize the investors savings : the investors savings can earn a higher rate of return on their investments with the help of mutual funds.
  • They help the investors to mimimize the risk that they are exposed to and help their maximize the return.
  • They help fulfill the goals of the investors.
  • They help diversify the investors portfolio by investing in stocks from different sectors.
answered by: anonymous
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