Mutual funds pool money from multiple investors to invest in a diversified portfolio of assets such as stocks, bonds, or other securities. Managed by professional fund managers, mutual funds offer a way to invest with diversified exposure and professional oversight.

• Equity Funds: Invest primarily in stocks, aiming for capital growth. They come in various subcategories based on market capitalization and investment strategy.
• Bond Funds: Focus on fixed-income securities like government or corporate bonds, providing regular income with typically lower risk compared to equity funds.
• Balanced Funds: Combine stocks and bonds to offer a mix of growth and income, suitable for investors seeking moderate risk and return.
• Index Funds: Track specific market indices, such as the S&P 500, providing broad market exposure with lower fees compared to actively managed funds.

• Diversification: Mutual funds spread investments across various securities, reducing the risk associated with individual investments.
• Professional Management: Fund managers handle research and decision-making, making mutual funds accessible for investors without extensive market knowledge.
• Liquidity: Shares can generally be bought or sold at the net asset value (NAV) at the end of each trading day.

• Market Risk: The value of mutual funds can fluctuate with market conditions, potentially leading to losses.
• Fees: Management fees and other expenses can impact returns over time.

Mutual funds offer a convenient and diversified investment option with professional management. They cater to different investment goals and risk tolerances but come with associated risks and costs that investors should carefully consider.