Mutual Funds
Mutual Fund
A mutual fund pools money from multiple investors to invest in stocks, bonds, or other securities. It is managed by professional fund managers.
Example
SBI Bluechip Fund is a popular mutual fund scheme.
Related terms
NAV
Net Asset Value (NAV) is the per-unit market value of a mutual fund. It is calculated by dividing total assets minus liabilities by number of units.
Expense Ratio
Expense ratio is the annual fee charged by mutual funds as a percentage of assets to cover operating expenses. Lower expense ratio means higher returns for investors.