Glossary
Mutual fund: meaning, example and why it matters
A pooled investment where many investors' money is managed by a fund house and invested in securities according to the scheme's stated objective. Returns are not guaranteed.
Worked example
If a fund's holdings are worth ₹100 crore and it has 10 crore units, each unit is worth ₹10. Investing ₹5,000 at a ₹10 unit value gives you 500 units.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
A mutual fund lets many investors share one managed portfolio, with returns and costs passed through to unit holders.
Related terms
See it in practice
Frequently asked questions
Are mutual fund returns guaranteed?
No. Returns depend on the value of the securities the fund holds and can be negative.
Is this page investment advice?
No. Mutual fund is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Start learning free →Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.