A mutual fund is a type of investment where money from many investors is combined and managed by professionals to buy a diversified mix of stocks, bonds, or other securities.Managed by professional fund managers, they offer individuals an opportunity to benefit from expert decision-making and risk diversification without directly buying individual assets. Mutual funds cater to various risk profiles, from conservative to aggressive, and are available in categories like equity, debt, hybrid, and index funds. Investors can start with small amounts, making them accessible to beginners. They also provide liquidity, transparency, and regulated oversight, making them a popular choice for long-term wealth creation and financial planning.