A mutual fund is an investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. Mutual funds are managed by professional fund managers, who make investment decisions on behalf of investors. They offer a convenient way for individuals to invest in a diversified portfolio, providing opportunities for capital appreciation and income generation. Mutual funds come in various types, such as equity funds, debt funds, and hybrid funds, catering to different risk appetites and financial goals.
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