What are mutual funds and how do they work?

A mutual fund facilitates the pooling of funds from multiple investors who share a common investment objective. As an investor, you put your money into various assets like stocks, mutual funds, Government Bonds, and ETFs.The returns that come from the funds will be distributed to the individuals according to the percentage of their holdings. You can buy and invest directly in stocks, or mutual funds Alternatively you can choose to invest in mutual funds with a professional money manager who is going to look after your funds' performance and decide where to put up for good returns.