Mutual funds :

Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of securities, such as stocks, bonds, or other assets. Managed by professional fund managers, these funds offer individual investors the advantage of diversification, which can reduce risk compared to investing in a single security.

Mutual funds are categorized based on their investment objectives, such as growth, income, or balanced funds, and they come in different structures like open-ended, closed-ended, or exchange-traded funds (ETFs). Investors in mutual funds own shares that represent a portion of the fund’s holdings.

The value of these shares fluctuates based on the performance of the underlying assets. Mutual funds are a popular choice for both novice and experienced investors due to their simplicity, professional management, and the potential for long-term returns