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[Audio] The concept behind mutual fund is that the investors sharing common financial goals pool in money with a mutual fund, which in turn invests that money in financial market securities like equity, debt, or money market instruments. The choice of financial securities is based on the fund objectives, which are actually defined on the basis of investors' financial goals. These financial instruments generate returns over the period of time. And the returns so generated are then passed back to investors.

Mutual Fund - Concept

abstract

Investors

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Mutual Fund

p ool in money with

invests money in

Financial market securities (based on fund objective)

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abstract

Returns

generate

passed back to