How do Mutual Funds work?

Описание: In the previous video, we learned how simple the personal finance math is. Now, in your personal finance journey, once you've understood the basic concepts like compounding and time value of money, you'll look for ways to invest your savings.

There are various regulatorily approved structures for managing money like:
1. Portfolio management services (PMS)
2. Alternative investment funds (AIF)
3. Mutual funds (MF)

The first two are for high net worth individuals (HNIs) and the minimum investment in a PMS scheme is Rs 50 lakhs while it's Rs 1 crore in an AIF. For the rest of us, mutual funds are one of the best ways to save for all our goals. While the act of choosing a scheme is easy to understand, it's worthwhile to understand the structure of an asset management company (AMC) which launches a mutual fund scheme. In this video, Karthik explain how an AMC is structured and the various entities it interacts with.

Check out this chapter if you want to learn more: https://zerodha.com/varsity/chapter/i...