For many, the world of investments can seem daunting, with Mutual Funds often appearing as a complex financial product. However, understanding the basics of Mutual Funds can open the door to a more informed and confident investment journey. Let’s break down what Mutual Funds are and how they work, making it easier for you to navigate this investment avenue.

What Are Mutual Funds?

At its core, a Mutual Fund is a financial vehicle that pools money from multiple investors to invest in a diversified portfolio of securities. This pooled fund is managed by professional fund managers who make investment decisions on behalf of the investors. By doing so, they aim to achieve the common investment objectives set by the fund.