Basic Knowledge of Mutual Fund: Everything a New Investor Should Know
|If you’re new to investing, you’ve probably heard people talk about mutual funds as one of the easiest and most effective ways to grow wealth. But what exactly are they? How do they work? And why do millions of Indians prefer them over traditional savings options? Let’s decode the basic knowledge of mutual funds in simple terms and help you take your first confident step toward smart investing — with the right guidance from MintWise . ๐งพ What Is a Mutual Fund? A mutual fund is an investment vehicle where many investors pool their money together to earn returns over time. This money is managed by a professional fund manager who invests it across different financial assets such as stocks, bonds, and gold — depending on the fund’s objective. The returns (or losses) are shared among all investors in proportion to how much they contributed. Essentially, it’s a way to invest without needing to personally track every market movement or analyze individual companies. ๐ผ Why In...