An investment is an asset or item that is purchased with the hope that it will generate income or will appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will be sold at a higher price for a profit.
A mutual fund is an investment vehicle made up of a pool of moneys collected from many investors for the purpose of investing in securities such as stocks , bonds , money market instruments and other assets . Mutual funds are operated by professional money managers , who allocate the fund's investments and attempt to produce capital gains and/or income for the fund's investors . A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus . Let's explain this term in a very simple way. Let's assume that you as an investor have no idea of shares and stocks. You need professional help and expertise. All you have to do is invest in a mutual fund scheme. A mutual fund scheme collects money from investors and buys and sell stocks collectively. L et's give you an example ...

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