A mutual fund is nothing more than a collection of stocks and/or bonds. You can think of a mutual fund as a company that brings together a group of people and invests their money in stocks, bonds, and other securities. Each investor owns units, which represent a portion of the holdings of the fund.
Mutual Funds provide investors access to different asset classes. Using Mutual Funds, you can invest in Equity, Debt & Gold. Mutual Funds even allow you to invest in International Funds, NIFTY/SENSEX Index Funds and now there are options of Debt Index Funds as well!
Investing in mutual funds has various benefits which makes it an ideal investment instrument for all investors. Following are some of the primary benefits.