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Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. These funds are managed by professional portfolio managers who make investment decisions on behalf of the fund's shareholders. By investing in mutual funds, individual investors can gain access to a diversified portfolio of securities without having to manage them directly. This allows investors to benefit from professional management and diversification, which can help spread risk and potentially provide higher returns. Mutual funds are available in a wide range of investment objectives and styles, making them suitable for investors with varying risk tolerances and financial goals. They are a popular choice for both individual and institutional investors looking to build a diversified investment portfolio.