Mutual Funds

THE FUNDS INVESTED BELONGS TO ALL THE CONTRIBUTORS (INVESTORS), HENCE IT MUTUALLY BELONGS TO ALL THE CONTRIBUTORS. HENCE ITS KNOWN AS 'MUTUAL FUND'.

ALL THE CONTRIBUTORS TO THE FUND HAS GIVEN A MANDATE TO THE FUND MANAGER/FUND MANAGEMENT COMPANY IN OTHER WORDS "ASSET MANAGEMENT COMPANY (AMC)" TO MANAGE THE FUND TO MAKE IT MORE WORTHY THAN WHAT IS GIVEN.

THE FUND MANAGER CHARGES A FEE FOR MANAING FUNDS WHO IS A PROFESSIONAL (A FULL TIME JOB), AND THAT FEE IS KNOWN AS "FUND MANAGEMENT CHARGES".

HOWEVER, THE PERFORMANCE & MARKET RISK IS BORN BY THE CONTRIBUTORS. BECAUSE, INSPITE OF ALL THE KNOLWEDGE OF THE MARKET & THE ECONOMY, THERE ARE MANY FACTORS WHICH ARE BEYOND THE CONTROL OF THE FUND MANAGER.