Answer:
Mutual funds are subjects to market risk and there is no assurance and no guarantee that the scheme goals or targets will be achieved or not.
A mutual fund business is to investment of the funds later, pick up according to the investor's wishes who created the pool.
There are two types of Mutual Fund such as:
- Open-ended Fund: An open-ended fund is one that available for subscription through all year.
- Close-ended Fund: This fund has a specific period of maturity which generally ranging from three to fifteen years.