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Essay text:
(Weston J. Fred and Brigham).
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money held in the trust is divided into shares of equal value called “units”. Investors become “unit-holders” and are allotted units based on the amount of their investment. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciation realized by the scheme are shared by its unit holders in proportion to the number of units owned by them (pro rata)...
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