(1) You give your money to some company running business of Mutual Fund. This company does the same job of buying and selling shares by your money. They deduct expenditure incurred during these transactions. From remaining money they deduct their share of margin (Mind they share only profit and not loss). Remaining profit, if any, is distributed proportionally to the customers who have paid them money. Reply +ly. Are you satisfied tell me.
(2) Market risk is involved equally in both the systems. But with some guidance from the experienced persons. You can start investing yourself in shares for very very long term and make good profit far far better than Mutual funds. And moreover it is free of I. Tax. More and more people are realizing this fact and starting to invest If shares are bought and sold by yourself or through / with the help of some intermediate agency. The loss or profit is 100% yours.
(3)More and more persons are realizing this fact and are investing in share market t ...more