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“Mutual Funds reported exceptional performance in 2009-10” was the news in major financial news papers recently. What is a mutual fund ? A type of collective investment scheme that pools money from many investors and invest it in stocks, bonds or other money market instruments. It is a subsidiary of a bank or financial company created specially to ralse money to be invested in a particular industry i.e. housing or insurance etc. The money raised thus cannot be invested anywhere else. When several banks and financial companies come together and create a common pool of money to fund mega infrastructural project like bridges, roads, power plants etc. the common pool is known as Mutual Fund.
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