Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of securities such as stocks, bonds, and other assets.

A professional fund manager invests the pooled money in a diversified portfolio. Investors buy shares in the mutual fund, which represent a portion of the holdings. The value of these shares fluctuates based on the performance of the underlying assets.

The main types include equity funds, debt funds, hybrid funds, index funds, and money market funds, each with different investment objectives and risk levels.
 

You can invest through a mutual fund company, a financial advisor, or an online brokerage platform. Many banks and financial institutions also offer mutual fund investment services.

The expense ratio is the annual fee that mutual funds charge their shareholders. It covers the fund's operating expenses, including management fees, administrative costs, and other expenses.

Benefits include diversification, professional management, liquidity, and the potential for higher returns compared to traditional savings accounts.

Like any investment, mutual funds carry risks. The level of risk depends on the type of fund and the underlying assets. It's important to choose funds that match your risk tolerance and investment goals.

Returns are calculated based on the change in the fund's net asset value (NAV) over a specific period, plus any income distributions such as dividends and interest.

NAV is the per-share value of a mutual fund, calculated by dividing the total value of the fund's assets minus liabilities by the number of shares outstanding.

Yes, there is a possibility of losing money if the value of the underlying assets decreases. It's important to research and understand the risks associated with each fund.

The minimum investment amount varies by fund and provider. Some funds may have minimums as low as $100, while others may require a larger initial investment.

You can track performance through the fund's website, financial news websites, and investment platforms. Most mutual funds provide regular statements and performance reports to investors.

Load mutual funds charge a sales fee or commission when you buy or sell shares, while no-load funds do not charge any sales fees.
 

A SIP allows investors to invest a fixed amount regularly (e.g., monthly) into a mutual fund. This approach helps in averaging the cost of investment and instilling a disciplined investment habit.

Mutual funds offer diversification and professional management, which can be advantageous compared to direct investments in stocks or bonds. However, they may have higher fees and less control over individual investments.