Question

What does a mutual fund do

Answer 1

A mutual fund is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

Answer 2

Answer:

A mutual fund is nothing but the system of Money management which is introduced by professionally investing money which is pick up form the public.

Mutual Fund are basically of two types such as:

• Close-ended Fund: This fund has a specific period of maturity which generally ranging from three to fifteen years.
• Open-ended Fund: An open-ended fund is one that available for subscription through all year.

A mutual fund business is to investment of the funds afterward, accumulate according to the investor's demand who created the pool.