I don’t mine repeating myself several times, unless you are helping someone to explain things. This is the post for my junior colleagues and for my team trying to dig for basics of Mutual fund , Asset management company , selection of funds and comparison of scheme with others.
So friends, A mutual fund is a trust that pools the money of several investors and manages investments on their behalf. Legally it is like any other company you know of. Hence, the fund is also called a mutual fund company. The fund company takes your money and like you from other new investors. This is added to the money that’s already invested with the fund.
Asset management company (AMC) – Investing and managing the collected money is a difficult task. The fund company delegates this to a company of professional investors, usually experts who are known for smart stock picks. This company is the Asset Management Company (AMC) and the fund company usually delegates the job of investment management for a fee. Continue reading “What is a Mutual Fund ?”