A mutual fund is a type of investment which pools money from investors to buy a portfolio of stocks, bonds, or other assets. It can be managed by one or more professional fund managers who make investment decisions based on the fund’s objectives.
When you buy into a mutual fund you own “units” which represent a proportional stake in its holdings.
There are various types of mutual funds, including index, equity, bond, money market, and multi-asset funds. Each fund caters to different risk appetites, preferences, and investment goals.