A mutual fund is a type of investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.
The money is managed by a professional portfolio manager, who invests the pooled funds according to the fund's investment objective and strategy.
When you invest in a mutual fund, you are essentially buying shares in the fund.
The value of your shares will rise or fall based on the performance of the underlying investments in the portfolio.
Mutual funds are a popular investment option for individuals who want to invest in the stock market or bond market but may not have the expertise or time to research and manage their own investments.
Mutual funds offer investors the benefits of diversification, professional management, liquidity, and convenience.
However, mutual funds also charge fees and expenses, which can reduce the overall return on investment.