Quite simply, a mutual fund is a mediator that brings together a group of people and invests their money in stocks, bonds and other securities.
Buying a mutual fund is like buying a small slice of a big pizza. The owner of a mutual fund unit gets a proportional share of the fund’s gains, losses, income and expenses.
Let’s assume that you as an investor have no idea of shares and stocks. You need professional help and expertise. All you have to do is invest in a mutual fund scheme. A mutual fund scheme collects money from investors and buys and sell stocks collectively.