As the name suggests, funds collected mutually from the common people, clubbed together and invested on their behalf into shares as per the investment objective of the fund.
Every fund will have an investment objective. Example, Axis Bluechip Fund, money pooled under this fund will be invested largely in Bluechip companies.
Based on the structure, mutual funds can be classified into Open ended and closed ended funds.
Investors can invest into Open-ended funds throughout the year and so, the name open-ended.
For a closed-ended fund, investors can invest only during the New Fund Offer (NFO) period, which generally lasts for few weeks.
