An Investment Unit (or "Mutual Fund") is a financial product of Asset Management Company (AMC) that pools the money of many investors-its unit holders-to invest in a variety of securities. Investments may be in stocks, bonds, money market securities or some combination of these. Those securities are then professionally managed on behalf of the unit holders. Each investors holds a portion of the portfolio, and is entitled to any capital gains, dividend interests, and rights, but also subject to risk of loss in value.

Type of Investment Units Various categories of funds are organized by the type of securities purchased by each IU's because IU's have specific investment objectives such as growth of capital, safety of principal, current income or tax-exempt income. Securities Exchange Commission (SEC) has set categories of IU using its investment policy, please click here for further information.