A mutual fund pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Managed by professionals, these funds offer an accessible way to access a variety of investment opportunities, spreading risk and potentially yielding higher returns. Investors buy shares in the mutual fund, and their gains or losses are proportionate to the fund's performance. With options ranging from equity to debt to hybrid funds, investors can align their investments with their risk tolerance and goals. Mutual funds provide flexibility, liquidity, and expertise, making them popular choices for both beginners and experienced investors.