A mutual fund is an open-end professionally managed investment fund that pools money from many investors to purchase securities.
Mutual funds are often classified by their principal investments as money market funds, bond or fixed-income funds, stock or equity funds, hybrid funds, or others. Funds may also be categorized as index funds, which are passively managed funds that match the performance of an index or actively managed funds. Hedge funds are not mutual funds as hedge funds cannot be sold to the general public.
Probably the most popular product in India at present. A mutual fund offers investors the opportunity to pool their money with other investors in an investment that's managed by professional investment managers. Mutual funds invest in stocks, bonds, or other securities according to each fund's objective.
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