When people hear the word ‘ mutual funds’ , they are either dumbfounded as to what these are and to those who do know about mutual funds – they are averse to most of its features, let alone how a mutual fund works or is able to provide returns. Is it magic? Well, today we will break down How does a mutual fund work? How does a mutual fund work? Mutual The word mutual would suggest something that is common. Thus in a mutual fund, the common element is people, wherein people come together and invest in a mutual fund thus creating something in common with each other. Thus, a mutual fund literally starts with the coming together of people. Fund It means money. The reason for all these people coming together is because of money – either to save money or to increase the same. After people come together, they invest their money in a fund, which suits everyone, depending on the needs of every individual entering into the fund. Goal or purpose This is the reason why many p