Mutual funds are a type of investment that pools money from multiple investors to create a diversified portfolio of securities, such as stocks, bonds, and other financial assets. The management of mutual funds is handled by professional fund managers who are responsible for making investment decisions on behalf of the investors. When an investor invests in a mutual fund, they are essentially buying shares in the fund, with the share price based on the current net asset value (NAV) of the fund. The NAV is calculated by dividing the total value of the fund's assets by the total number of outstanding shares. Mutual funds are a popular investment option for those seeking a professionally managed, diversified investment with a high degree of liquidity and transparency. However, mutual funds also have risks, and investors should carefully assess their investment goals, risk tolerance, and investment horizon before investing in mutual funds.