How does Mutual Fund actually work?

We have heard a lot of buzz on invest your money in mutual funds / "mutual funds sahi hai" etc!

But how does these funds actually work? 

If you dont know how these funds work? How would you trust your money in it?

So this blog talks about in detail on how mutual funds actually work?

You invest your money by choosing the right mutual fund 

These fund managers - manage that is invest your money into securities along with the other's money resulting into management of a big corpus fund.

Why the big corpus - to maximize the returns resulting into increase of your money.

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