What is mutual funds and why people invest money in mutual fund?

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Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.

Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors.
Investors buy shares of the mutual fund, which represent a portion of the holdings of the fund.
People invest in mutual funds to diversify their investment portfolio, reduce risk, and access professional management.
Mutual funds offer liquidity, convenience, and the ability to invest in a wide range of assets with relatively low investment amounts.
Investors can choose from different types of mutual funds based on their investment goals, risk tolerance, and time horizon.
Examples of mutual fund types include equity funds, bond funds, money market funds, and index funds.

What is mutual funds and why people invest money in mutual fund?

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