Eqbal Habibi

120633

A mutual fund is an investment organization which uses the savings from a large number of investors in order to invest it, earn return on it, attempts to make it grow and agrees to pay interest to the investors.

1. Operational classification

2. Portfolio based classification

Open Ended funds

There is no limit for investment and entry and exit is not restricted

Close Ended funds

Under this scheme the investment is limited and the entry is and exit is restricted.

Growth oriented

The investors income from the investment is reinvested in order to grow the money

Income oriented

The investors income will be given to the investors

1. Mobilizing small savings

2. Investment Avenue

3. Professional management

4. Better liquidity

5. Reduced risks

6. Investment protection

7. High ROI

features

9. Flexibility

10.Tax benefits

12.Economic development