(ii) Mutual Funds

(ii) Mutual Funds Financial institutions that provide facilities for channeling savings of small investors into avenues of productive investments are called ‘Mutual Funds’. A mutual fund company invests the funds pooled from shareholders and gives them the benefit of diversified investment portfolio and a reasonable return. 12th Commerce Unit - - . . AM Specialized financial institution like LIC, UTI, etc., beside commercial banks such as SBI, and Canara Bank are carrying out the business of mutual funds. The benefits of mutual fund are high return, easy liquidity, safety and tax benefits to the investors.