BS Primer: Ever wondered how Mutual Fund houses make money?

What are Mutual Funds?

Mutual funds are investment schemes which offer a bundle of securities to the investors while spreading the risk of investment at the same time. Investors have the advantage of picking one scheme of their choice and thereby avoid the Herculean task of analysing hundreds of stocks themselves before making a choice. At a nominal fee, mutual funds provide a great opportunity to investors who don’t have the knowledge of investing. They can pick one financial goal and choose a mutual fund scheme which suits their goal. Afterwards, they can simply invest in that preferred scheme to accumulate