A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, which is managed by a professional fund manager. Investors buy shares of the mutual fund, and their money is pooled with that of other investors to invest in a diversified portfolio.Mutual funds are popular among investors because they offer several benefits, including diversification, professional management, and liquidity. They also allow investors to access a wide range of securities with relatively small investments.