A mutual fund is an investment fund that gathers funds from various investors and invests them in a diversified portfolio of assets such as stocks, bonds, commodities, or other investment instruments. Investors are issued shares of the fund, which represent their share of the total assets of the fund. Mutual funds are managed by professional managers who decide on the investment strategy and selection of assets. There are different types of mutual funds, including open-end and closed-end funds, which differ in terms of trading methods and liquidity. Mutual funds provide investors with the opportunity to achieve diversification and professional management of their investments.