Mutual fund is a collection of stocks, bonds, or other securities owned by a group of investors and managed by professional investment company. For an individual investor to have a diversified portfolio is difficult, solution is mutual fund. You can approach to mutual fund advisor who can help you in taking prudent decision. Mutual funds have become very popular since they make individual investors invest in equity and debt securities easy.
When investors invest in mutual funds, he becomes the unit holder of proponent units. In turn, mutual funds invest unit holders money in stocks, bonds or other securities that earn interest or dividend. This money is distributed to unit holders. If the fund gets money by selling some stocks at a higher price the unit holders also are liable to get capital gains.