A mutual fund is an investment vehicle that pools money from many investors to buy a diversified portfolio of stocks, bonds, or other securities. This allows individuals to invest in a variety of assets without needing to buy each one separately. By sharing the costs and risks, mutual funds make investing more accessible for people with different financial backgrounds. Investors in a mutual fund own shares of the fund, which represent their portion of the total investments. The fund is managed by professional managers who make decisions on buying and selling assets. This professional management helps investors benefit from expert knowledge and experience in the financial markets.