A mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in a variety of securities. The securities in a mutual fund can include stocks, bonds, and other assets.
Mutual funds are managed by professional money managers who attempt to achieve the goals of the fund, such as capital appreciation or income generation. Investors in a mutual fund share in the profits or losses of the fund, depending on the performance of the underlying securities
.Mutual funds provide a way for small investors to pool their resources and invest in a diversified portfolio of securities. By investing in a mutual fund, investors can get access to a wide range of investments that they would not be able to buy on their own.mutual funds also offer liquidity, meaning that investors can buy and sell shares at any time. This is unlike many other investments, such as real estate or paintings, which can be difficult to sell quickly.
Finally, mutual funds are regulated by the U.S. Securities and Exchange Commission (SEC), which provides some protection for investors from fraud or dishonest fund management.