Professional Documents
Culture Documents
MUTUAL FUNDS
Mutual Funds
Study Session 5
LOS 1 : Introduction
A mutual fund is a common pool of money into which investors place their contributions that are to
be invested in accordance with a stated objective.
A Mutual Fund is the most suitable investment for the cautious investors as it offers an opportunity
to invest in a diversified professionally managed basket of securities at a relatively low cost.
Mutual fund is a type of passive investment. If investors directly investment in market is known as
active investment.
Note:
𝐎𝐩𝐞𝐧𝐢𝐧𝐠 𝐍𝐀𝐕+𝐂𝐥𝐨𝐬𝐢𝐧𝐠 𝐍𝐀𝐕
Average NAV =
𝟐
Exit Load is paid by the investor at the time of selling of mutual fund units.