What is a mutual fund?
A mutual fund is a pooled investment product. Investors buy units, and the fund invests the pool in securities according to its scheme objective.
Why does it matter?
It provides diversification and professional portfolio management. Compare funds by category, objective, cost, risk and consistency rather than return alone.
What are the limitations?
Mutual funds carry market risk. Past performance does not guarantee future returns, and scheme documents remain the primary source.
FAQ
Is a mutual fund risk-free?
No. Risk varies by category, portfolio and investment horizon.