A mutual fund is a type of investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. This allows individual investors to access a broader range of investments than they might be able to afford on their own, while also benefiting from professional management. Investors buy shares in the mutual fund, and the fund's value fluctuates based on the performance of its underlying assets. Mutual funds are typically managed by financial professionals who make decisions about which securities to buy and sell, aiming to achieve specific investment objectives for the fund's shareholders.