Answer Posted / laxman

A Mutual Fund is a trust that pools the savings of a number
of investors who share a common financial goal. The money
thus collected is then invested in capital market
instruments such as shares, debentures and other
securities. The income earned through these investments and
the capital appreciation realized are shared by its unit
holders in proportion to the number of units owned by them

Types of mutual funds

By Structure

Open-ended
Closed-ended

By investing objective

Equty schems
Debt or income schemes
Mony measurment schemes
Hybrid schemes

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