A mutual fund is an investment vehicle that pools funds from investors and invests in equities, bonds, government securities, and other assets
Mutual funds are managed by sound financial professionals known as fund managers, who have the expertise in analysing and managing investments.
In India, the capital markets regulator SEBI (Securities and Exchange Board of India) has encouraged the mutual fund industry by creating a system that works for the benefit of all stakeholders.
The funds collected from investors in mutual funds then invested by the fund managers in different financial assets such as stocks, bonds, and other assets, as defined by the fund’s investment objective.
Companies then to set up mutual funds, create Asset Management Companies (AMCs) or Fund Houses, pooling in the money from investors, market mutual funds, manage investments and enable investor transactions