A mutual fund is a pooled investment vehicle that collects money from multiple investors and invests it in a diversified portfolio of assets, such as stocks, bonds, or other securities. Each investor in the fund owns shares that represent a portion of the holdings of the fund. Mutual funds are managed by professional portfolio managers who make investment decisions in line with the fund’s objectives, whether it’s growth, income, or preservation of capital. This structure allows even small investors to gain access to a diversified portfolio with lower individual risk and the benefit of professional management. Mutual funds are available in various forms — including index funds, bond funds, and sector-specific funds — and can be actively or passively managed. They're regulated by financial authorities (like the SEC in the U.S.), and investors typically pay management fees. Overall, mutual funds offer a convenient, lower-barrier way to build a well-rounded investment strategy, especially for those new to investing.