ℹ️Definition
A mutual fund is a professionally managed investment vehicle that pools money from multiple investors to invest in a diversified portfolio of securities. It operates as a separate legal entity with its own financial records, governed by regulatory frameworks specific to each jurisdiction.
From an accounting perspective, a mutual fund maintains a complete set of books including a general ledger, investment register, unit holder records, and produces daily NAV calculations along with periodic financial statements.
Net Assets = Total Assets - Total Liabilities
NAV per Unit = Net Assets ÷ Units Outstanding
📈 ASSETS (+)
Investments at fair value (equity, debt, derivatives)
Cash and cash equivalents
Fixed deposits / term deposits
Interest receivable (accrued)
Subscription receivable (pending settlement)
📉 LIABILITIES (-)
Administration fee payable
