mutual fund is a type of investment
A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in a diversified portfolio of securities such as stocks, bonds or other assets Mutual Fund Definition : A mutual fund is a professionally managed investment fund that collects money from many investors and invests it in various assets. How it Works : Investors buy units or shares of the mutual fund. The fund manager uses this pooled money to buy securities according to the fund’s objective. Types : Equity Funds : Invest mainly in stocks. Debt Funds : Invest in bonds and fixed-income instruments. Balanced or Hybrid Funds : Invest in both stocks and bonds. Index Funds : Track a specific market index. ELSS (Equity Linked Savings Scheme) : A tax-saving mutual fund in India. Benefits : Diversification (spreads risk) Professional management Liquidity (easy to buy/sell) Accessibility (low minimum investment) Risks : Market risk Management risk I...