Way before investing in Mutual Funds

Mutual fund if a trust that pools the savings, which are then invested in capital market instruments such as shares, debentures and other securities. Mutual fund works in a different manner as compared to other savings organizations such as banks, national savings, post office, non-banking financial companies etc. As most if not all capital market instruments have an element of risk, it is very essential that the investor have a clear understanding of how a mutual fund operates and are its advantages as well as limitations. This understanding has to be created in the investors in this regular changing scenario of investments in mutual funds by this book.