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Unable to find old thread about Mutual funds. anduke new one. Mutual fund investments are subject to market risks Traditionally, Indians have relied on real estate, gold, and bank fixed deposits for their investments. However, in the last two decades, mutual funds have emerged as an alternative and possibly superior investment option because mutual funds offer an opportunity to earn higher returns compared to these traditional investments. Mutual Fund: Mutual fund is an investment that pools funds from investors and invests in equities, bonds, government securities, gold, and other assets. Fund Manager: Mutual funds are managed by sound financial professionals known as fund managers, who have the expertise in analysing and managing investments. The funds collected from investors in mutual funds are invested by the fund managers in different financial assets such as stocks, bonds, and other assets, as defined by the fund’s investment objective. Where and when to invest are some of the things taken care of by the fund managers, amongst many other responsibilities. Expense Ratio: For the fund’s management, the AMC charges a fee to the investor known as the expense ratio. It is not a fixed fee and varies from one mutual fund to another. SEBI has defined the maximum limit of the expense ratio that can be charged on the basis of the total assets of the fund. NAV (Net asset value): NAV is commonly used as a per-share value calculated for a mutual fund or ETF . NAV is calculated at the end of each trading day based on the closing market prices of the portfolio's securities. Mutual Fund Companies: