Pooling money, simply put
Many people, one basket
Before any rule or ratio, hold on to one picture. A mutual fund is just many people putting money into one basket, which a professional then invests for all of them.
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A mutual fund pools money from many people into one basket.
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A professional fund manager invests that basket for everyone.
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You own units, which are your share of the basket.
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Your gains and losses move with the basket, in proportion to your units.
100 people put in ₹1,000 each. The fund now has ₹1,00,000 to invest as one pool. If it grows 10%, each person's share grows about 10% too.
Practice
🔥 0 streakReal exam format. Answer by voice, tap, or press 1 to 4. No negative marking, so always attempt.
In a mutual fund, what do you actually own?
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Education for the exam, not financial advice. Answers can be wrong, so confirm figures against the workbook.