Mutual Fund is nothing but a common pool of money collected from a lot of people which is used by an experienced fund manager who invests the money in the Share market. Many of us are inexperienced in right treatment of funds available to us. Anyone can invest in equity market with lesser knowledge of funds by directly investing in a mutual fund. It's a chance or say boon to a investor who wants to take a risk and gain higher returns from the market. The money invested in mutual funds is in small units termed as face value and the face value multiplies number of units results in total fund value. Mutual funds are purely subjected to market risk factors.
Mutual funds are the part of commercial financial market.
The mutual funds investors need Demat:(Dematerialised) account in a bank or with a stock broker to do trading. The securities (mutual funds, shares, bonds etc.) are held in the electronic form by a depository. At present in India there are two depository institutions in present : NSDL (National Securities Depository Ltd.) and CDSL ( Central Depository Services Ltd.).
Various mutual fund agencies and companies are present in the market such as ICICI Mutual Funds, Reliance Mutual Funds, etc.
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