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10 Key Things To Know About Mutual Funds

Units. The small but powerful tool

Here’s a fun way of understanding the power and benefit of units. Let’s say that there is a box of 12 chocolates costing Rs. 40. Four friends decide to buy these chocolates but they have only Rs. 10 each and the shopkeeper only sells by the box. So the friends then decide to each pool in the Rs.10 that they have and buy the box of 12 chocolates. Now based on their contribution, they each receive 3 chocolates or 3 units, if equated with Mutual Funds.

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