Mutual fund
Also called: mutual funds, asset management company, AMC, direct plan, regular plan, exit load
A pooled investment, run by an asset management company and regulated by SEBI, in which investors own units of a portfolio managed to a stated objective.
An independent custodian holds the assets and trustees oversee the manager. Direct plans, bought without a distributor, have lower expenses than regular plans of the same scheme. Funds can lose money: the structure protects assets from misuse, not from market falls.
Learn more in these lessons
- Mutual fund fundamentalsHow does a mutual fund work, and what should you check before investing?
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