A Mutual Fund can be termed as a form of a collective investment that collects money from many investors and invests the money into stocks, bonds, short-term money market instruments, and / or other securities.    In this type fund, the fund manager trades the fund's underlying securities, realizing their capital gains or loss, and collects the dividend or say the interest income. The investment earnings are then passed along to the individual investors.    The value of a share of the Mutual Fund, known as the net asset value, is calculated daily based resting on the total value of the fund divided by the number of shares purchased by investors. If you have any query about mutual fund investment Contact Mr. MK Prabhagharan, Best Mutual Fund Advisor.    Usage Of A Mutual Fund    In this type fund can invest in many different kinds of securities. The most well known are cash, stock, and the bonds, but there are hundreds of sub-categories. Like the stock funds, for instance, can invest primarily within the shares of a particular market, technology or utilities.    These are known as the sector funds. A Mutual Fund bond can vary according to the level of risk like the high yield or the junk bonds, investment grade corporate bonds, sort of issuers mainly the government agencies, corporations, or the municipalities.    Most Funds investment portfolios are frequently adjusted under the supervision of an expert professional Mutual Fund Advisor, who then forecasts the future performance of investments apt for the Mutual Fund and chooses the ones, which he or she believes, will most closely match the Funds stated investment objective.    These Funds are subject to a special set of regulatory, accounting, and tax rules. Dissimilar to most other types of business entities, the Mutual Fund is not taxed on their income as long as they distribute substantially all of it to their shareholders.    The sort of income they earn is often unchanged as it passes through to the shareholders. Fund distributions of tax-free municipal bond income are also tax-free to the shareholder. Taxable distributions can either be of the ordinary income or capital gains, depending on how the fund has actually earned it.