Different investment avenues are available to investors. Mutual funds also offer good investment opportunities to the investors. Like all investments, Mutual Funds also carry certain risks. The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking Mutual Fund investment decisions. The investors may seek advice from experts and consultants including agents and distributors of mutual funds schemes while making investment decisions.
Mutual Funds are portfolio of stock market shares and other financial instruments built with funds collected from (usually) small investors whose primary concern is security of investment. These funds are run by government trusts, banks, and now private financial institutions as well. These funds can be OPEN – FUNDED or CLOSED – ENDED.
There are different kinds of mutual funds to cater to varied investment objectives: Growth Funds, Income Funds, Balanced Funds, and Liquid Assets Funds, also known as Money Market Funds.
What is known in the United States and India as mutual funds is called a Unit Trust in Britain.