Mutual funds are investment vehicles that pool money from many investors to buy a diversified portfolio of stocks, bonds, or other securities. Instead of investing in individual stocks or bonds yourself, you invest in a mutual fund, and the fund manager handles the buying, selling, and management of the investments on your behalf. This gives you access to a variety of assets with just one investment, spreading out your risk and potentially offering better returns over time.

In short, it’s a way for smaller investors to get exposure to a variety of investments, making it easier to build a balanced portfolio.

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