What is Mutual Fund

A mutual fund is a type of investment vehicle that pools money from many investors to invest in a diversified portfolio of assets like stocks, bonds, or other securities.

Here’s how it works in simple terms:

You (the investor) put money into a mutual fund A professional fund manager uses that pooled money to buy various investments.

You own units or shares of the mutual fund, not the actual assets.

The value of your investment goes up or down based on the performance of the assets in the fund.

Key Features of Mutual Fund:

Diversification: Spreads out risk by investing in multiple assets.

Professional management: Managed by experts.

Liquidity: Easy to buy or sell (especially open-ended funds).

Types: Equity funds (stocks), debt funds (bonds), hybrid funds (mix of both), etc.Let me know if you want examples or help choosing one!