Mutual Funds are professionally managed investment schemes where money from several investors is pooled by an Asset Management Company (AMC) and invested in different instruments such as debt, equity and money market securities. The resulting profit, after deductions by the asset management company (AMC), is given back to the investors as dividends or capital appreciation. Mutual Funds are regulated by the Association of Mutual Funds in India (AMFI)When you can invest in stocks or government securities on your own, you may feel that you don’t need professional help to manage such investments. You could be wrong. Investing in the markets is not simply choosing stocks and forgetting about them. The process becomes fairly complex when more than a couple of stocks and fixed-income securities are involved and almost impossible for any run-of-the-mill investor. With professionally managed Mutual Funds, you can be assured that your investments are managed by people with many years of experience with market analysis. They will have enough knowledge to take calls on buying and selling those stocks and other investments. You might not actually have that kind of knowledge or time to handle individual stock or fixed-income investments. Fund managers can easily identify laggards and prevent the portfolio from becoming stagnant due to underperformers. With Mutual Funds, you get.
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