A mutual fund is a pooled investment vehicle that gathers money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Managed by professional fund managers, mutual funds offer individual investors an opportunity to participate in the financial markets without directly buying individual securities. Investors purchase units or shares of the mutual fund, and the value of their investment is determined by the fund's net asset value (NAV), which fluctuates based on the performance of the underlying assets.