A mutual fund is an investment vehicle that allows a group of investors to pool their money together and invest in a portfolio of financial instruments. Mutual funds are operated and managed by a professional fund manager who is responsible for investing the pooled money into specific securities (equities, bonds, money market instruments and/or other assets) to meet the predefined investment objective. When investors subscribe into a mutual fund, they are buying units of the mutual fund and thus become a unit holder of the fund.
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