Mutual Funds are investment vehicles that pool money from multiple investors and invest it in diversified financial assets such as stocks, bonds, money market instruments, or other securities. These funds are managed by professional fund managers who make investment decisions based on the fund’s objective. Investors receive units proportional to their investment, and returns are generated through capital appreciation, dividends, or interest income.

Mutual funds help reduce risk through diversification and are suitable for both beginners and experienced investors. They offer options like equity funds, debt funds, hybrid funds, and tax-saving funds, making them flexible for different financial goals and risk appetites.