A mutual fund is an investment option where money from many people is pooled together to buy a variety of stocks, bonds, or other securities. This mix of investments is managed by a professional money manager, providing individuals with a portfolio that is structured to match the investment objectives stated in the fund's prospect us.
By investing in a mutual fund, individuals gain access to a broad range of investments, which can help reduce risk compared to investing in a single stock or bond.
Money market funds, sometimes called money funds, are a type of mutual fund that has relatively low risks compared to other mutual funds and most other investments.