Investing can often feel overwhelming, especially for beginners who are just starting their financial journey. With so many options available—stocks, bonds, gold, or real estate—many people wonder where to begin. One of the simplest and most popular choices is a mutual fund, which allows investors to participate in financial markets without needing in-depth knowledge of individual securities.
A mutual fund is essentially a pool of money collected from multiple investors. This money is managed by a professional fund manager, who invests it into a diversified portfolio of assets such as equities, debt instruments, or a combination of both. Each investor owns units in the mutual fund, which represent a proportional share of the overall portfolio. In simple words, mutual funds allow small investors to enjoy the same diversification and expertise that large investors have access to.
