What "mutual fund" means in finance

A mutual fund is a type of investment vehicle that pools money from a large number of investors to invest in a diversified portfolio of stocks, bonds, or other securities. The fund is managed by a professional fund manager who makes investment decisions on behalf of the investors in the fund. The returns from the fund are distributed among the investors based on the proportion of their investments in the fund. Mutual funds offer investors an easy and affordable way to invest in a diversified portfolio of securities, and are available in different types and investment strategies to suit different investment goals and risk profiles.