As the name suggests, a ‘Mutual Fund’ is an investment vehicle that allows several investors to pool their resources in order to purchase stocks, bonds and other securities.

These collective funds (referred to as Assets Under Management or AUM) are then invested by an expert fund manager appointed by a mutual fund company (called Asset Management Company or AMC).

                    
                                The combined underlying holding of the fund is known as the
                             ‘Portfolio’, and each investor owns a portion of this portfolio in                          form of units.