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How do mutual funds work?

We explain the fundamentals to help you get started

How Do Mutual Funds Work? A Beginner’s Guide to Smart InvestingAI-generated image

Mutual funds offer a simple way to build wealth. They spread out the risk of investing in individual stocks, bonds or other securities. And you can start investing in such a diversified portfolio with a sum as small as Rs 250, and in some cases, even with a sum of Rs 100. This instant diversification makes it a great way for beginners to start their investment journey.

This article was originally published on April 29, 2025.


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