A mutual fund is an investment company that takes cash from investors and invests it into diversified securities. It is a form of saving, where the value of invested funds increases on a permanent basis.

A mutual fund is a form of investment fund, which is intended for every person who wants to increase the value of his/her funds by investing in securities.

A mutual fund therefore presents the sum of investors' funds, which are professionally managed and invested in various shares, bonds and other securities.

The fund itself is not a legal entity; however, it is a pool of investors' funds, which means that all assets of the fund are actually owned by the fund's investors. The assets are distributed into equal portions and they are called units.

All forms of capital investments (saving deposits, purchases of shares, investments in mutual funds) bear the same purpose – to enhance the value of our funds. There are many reasons for investing money and increasing its value. How can we spend our money? Well, that depends on our wishes, objectives and needs. Every chosen investment depends on three key factors: saving period, investment risk and return.