Key Points related to Mutual Funds :

(1)Mutual Funds are professionally managed funds.

(2)It is a fund that pools money from various investors.

(3)The Money so collected is used to buy the stocks/shares of companies and the investors are allotted units according to the money they contributed in funds.

(4)Mutual Funds Investment are subject to market risks but are better for a beginner who has no knowledge about stock market as these funds invest money in different stocks and are managed by professionals.

(5)Mutual funds these days are categorized according to the risk taking ability of an Investors.

(6)There are 2 ways of Investing money in Mutual funds : Lumpsum and SIP

(7)A better option for those looking for long-term wealth creation.