A mutual fund is a type of investment vehicle that pools money from a group of investors to purchase a diversified portfolio of securities, such as stocks, bonds, or other assets. Each investor owns a share of the mutual fund, which gives them access to a professionally managed portfolio that is designed to meet the fund's investment objective.

Mutual funds are typically managed by investment professionals who use their expertise to buy and sell securities on behalf of the fund's investors. They may also adjust the fund's asset allocation over time to respond to changes in market conditions or to meet the fund's investment goals.

Investors in mutual funds benefit from diversification, as the fund's assets are spread across a range of securities and issuers, reducing the impact of any one investment on the overall performance of the fund. They also enjoy liquidity, as they can typically buy or sell their shares in the mutual fund on any business day at the current market price. Finally, mutual funds offer access to professional management and investment expertise that many individual investors may not have on their own.