Academy lesson

What is a mutual fund?

The basic building block

Beginner·5 min read·Mutual Fund Basics Foundation
Sign in to bookmark
Lesson statusIn progress
5 minute lesson

A mutual fund pools money from many investors and invests it in a portfolio of securities - stocks, bonds, gold or a mix - run by a professional fund manager at an Asset Management Company (AMC).

You get units representing your share of the pool, and your money is spread across many holdings instantly. All Indian mutual funds are regulated by SEBI, which enforces disclosure and investor protection.

Connected intelligence

Continue from this lesson

Every recommendation is based on editor-approved Knowledge Graph relationships.

Learn the concept

related toWhat is NAV (Net Asset Value)?The price of one fund unitWhy it is here: Connected through the Gajamudra Knowledge Graph.

See the research

researchesThe 12th Man Episode 001 | Understanding Mutual Fund Portfolios Through Cricket | GajamudraBefore every cricket match, millions of fans wait for the Playing XI. Yet when it comes to investing, most of us ignore the equivalent document entirely. Episode 001 of The 12th Man explores why that simple list matters more than you think.Why it is here: Continue with evidence connected to this lesson.

Explore the data

applies withPortfolio OverlapCompare two funds: shared stocks, Jaccard universe overlap and matched weight overlap before holding both.Why it is here: Apply this concept to real disclosed portfolio data.

Understand the terms

explainsMutual FundA pooled investment vehicle that collects money from investors and invests it according to a stated scheme objective.Why it is here: Review a connected term in plain language.

Follow a Learning Route

part of routePortfolio BasicsRead holdings, allocation and concentration before comparing funds.Why it is here: Follow this topic through a guided Learning Route.

Related knowledge

referencesNet Asset ValueUnderstand how a scheme’s per-unit value is calculated and used.Why it is here: Connected through the Gajamudra Knowledge Graph.

Check your understanding

RC2: What is a mutual fund? knowledge check

A short server-validated knowledge check.

What does a mutual fund primarily do?
Who owns units in a mutual fund scheme?

Finished this lesson?

Sign in free to keep your place across devices.

Sign in to track