Mutual funds are pooled investment vehicles managed by professional fund managers. They collect money from multiple investors and invest in stocks, bonds, or other securities based on the fund’s objective. There are various types of mutual funds—equity, debt, hybrid, ELSS (tax-saving), index funds, and more—each with different risk-return profiles. Mutual funds offer diversification, professional management, liquidity, and access to various sectors and assets. They can be actively managed (where the fund manager makes decisions) or passively managed (such as index funds that track benchmarks). Returns are subject to market performance and expense ratios. Investors should review fund fact sheets, past returns, fund manager history, and asset allocation before investing. SIPs (Systematic Investment Plans) allow investors to invest small amounts regularly, promoting financial discipline. Mutual funds are ideal for new investors looking to gain exposure to the markets without directly selecting individual stocks or bonds.