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Mutual funds

August 7, 2009

Mutual funds are Investment Company that pools money from investors at large and

offer to sell and buy back its shares on a continuous basis and use the capital raised to invest in

securities of different companies.

How Mutual Funds Work:

Mutual funds can be either of both open ended and close ended

investment companies depending on their fund management pattern.

An open ended fund offer to sell it shares continuously to investor either in retail or bulk.

Close end fund have limited number of shares.

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