Mutual Fund is a combination of various investments including Banks investments, Debentures (Loans to the businesses), equity shares, money market instruments, and other assets. etc. The more there will be debentures the more investment will be secure and less will be the return, opposite in case of equity. The combination is done under mutual funds to minimise the risk.
Mutual funds are operated by professional money managers, who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.
-- The above result is obtained by our Expert' Opinion