It depends on the type of the mutual fund and also the investment objective of the fund. For Ex:
A equity diversified fund would invest in a combination of large and mid cap shares whereas a debt mutual fund would invest in bonds and other government securities whereas a gold ETF would invest in the precious metal gold
The Fund Manager is the person who invests the funds Assets Investors invest in the Fund to create the Assets that will be invested by the Fund Manager
They can invest their own income/profits in a mutual fund but they cannot invest the depositors money in a mutual fund
There are good and bad advantages to having a mutual fund. The good is that you pool your money with other people like yourself and diversify your holding. There is a professional fund manager to invest your money for you. The taxes from your investments are simplified for you. The bad..... the fund manager gets paid regardless of their performance, the so-call professional fund manager is usually no better then just picking the S&P or DOW yourself. Fund managers seldom have your best interest in mind.
A Portfolio Manager or a Fund Manager for a Mutual Fund is not elected but Selected by the Asset Management Company
Life insurance companies invest their life fund in Government fund, shares in First Class companies of repute,as per advice of their Fund Investment Advisors.
Some type of pooled investments that invest's in things to make money. The rules vary depending on the manager. They are usually less strict on what to invest in vs. a mutual fund. Hedge funds can do what ever they want to for investments.
The fund manager
A mutual fund is an investment instrument for the common man does not have the time or expertise to invest directly in the stock market. an experienced investor pools in money from such investors and invests in the stock market on their behalf. This person is called the fund manager and the organization that employs this person is the fund house. The whole system is called a mutual fund.
Invest it in a good place...
Yes, they can. But, not all mutual funds can invest in shares and securities abroad. They can only do so, if the mutual fund scheme has it in the fund objectives.
mututal fund represents a vehicle for collective investments....an individual who cant invest directly in securities market cantake help of mutual fund to invest on his behalf..in nutshell it is indirect investing.....the way to invest is through a mutual fund like kotak mf/ icici mf/uti mf/ hdfc mf etc.....be informed wherever u invest and be a regular monitor of ur investments...
Mutual fund is a low risk investment. If you invest in a mutual fund, you owns shares of the mutual fund company who is selling you fund. But you do not actually own any underlying asset of the stocks or securities that mutual fund has invested in even they are using your money to invest.