Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Managed by professional fund managers, mutual funds offer individuals with limited investment knowledge access to a diverse range of assets, spreading risk and potentially providing higher returns. Investors buy shares in the mutual fund, and the value of these shares, known as Net Asset Value (NAV), fluctuates based on the performance of the underlying securities. Mutual funds come in various types, such as equity funds, bond funds, and balanced funds, catering to different risk appetites and financial goals. They provide liquidity, flexibility, and professional management, making them popular choices for long-term wealth creation and retirement planning. However, investors should carefully consider the fund’s objectives, risks, and fees before investing.