Mutual Fund

A mutual fund is an investment vehicle that pools money from many investors to buy a diversified portfolio of securities such as stocks, bonds, money market instruments, or other assets, all managed by professional fund managers. Investors purchase shares in the mutual fund, each representing partial ownership of the fund’s overall holdings and entitling them to a proportional share of any income or capital gains generated. Mutual funds offer benefits such as diversification, professional management, and easy access to a broad range of investments, but they also involve fees and expenses that can affect overall returns.