“Mutual fund is a pool of money invested according to a common investment objective by an asset management company (AMC) on behalf of the fund’s investors”. A mutual fund can generate profits from three different sources, which are: Dividend, Capital Gains and Appreciation of Share Price. The figure below shows that mutual fund deals with the following entities; trustee, auditor, SECP, AMC and investor. A mutual fund provides liquidity, portfolio management expertise, risk diversification, and stability…
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