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                     Mutual funds
What Are Mutual Funds?
A mutual fund collects money from many investors
This pooled money is invested in stocks, bonds, or other assets
Managed by expert fund managers
Helps investors build wealth without needing deep market knowledge
How Do Mutual Funds Work?
1. Investors add money to the fund
2. Fund manager invests the money in selected assets
3. NAV (Net Asset Value) reflects the value of the fund
4. Investors earn returns based on fund performance
5. Units can be bought or sold anytime (depending on the fund type)
Types of Mutual Funds
1. Equity Funds: Invest mainly in stocks (high growth potential)
2. Debt Funds: Invest in bonds & fixed income (stable returns)
3. Hybrid Funds: Mix of equity + debt for balanced growth
4. Index Funds: Track market indices like Nifty or Sensex
5. ELSS Funds: Tax-saving funds under Section 80C
6. Liquid Funds: Ideal for short-term parking of money
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