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What are mutual funds and how do they work in India?
Mutual funds are investment india vehicles that pool money from various investors to invest in a diversified portfolio of stocks, bonds, or other securities. In India, mutual funds are managed by Asset Management Companies (AMCs) regulated by the Securities and Exchange Board of India (SEBI). When investors buy units or shares of a mutual fund, they effectively own a portion of the fund’s holdings. The fund’s performance is directly linked to the performance of its underlying securities.
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