Mutual Funds

An Investment Company operates a Mutual Fund. The Investment Company pools shareholder or unit holder funds and invests in various securities. It raises money from shareholders and invests it in stocks, bonds, options, commodities or money market securities that meet the investment objectives of the fund and distributes the profits. In other words, a mutual fund allows an investor to indirectly take a position in a basket of assets
The Investment Company offers the investor the benefits of portfolio diversification (provides greater safety and reduced volatility), and professional management. The portfolio manager trades the fund’s underlying securities, realizing a gain or loss, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The units or shares are redeemable by the fund on demand by the investor. The value of the assets of the fund influences the current price of units.