A mutual fund is a type of investment wherein which a "a group of investors" or an investment company pools money from many investors to buy stocks, bonds, or other money market instruments and is managed by a Fund Manager. This is a better option to investing directly, say in the stock market, especially if one has no time to do the research on individual companies and have no technical expertise in stock trading.
Courtesy of IMG
From the diagram above, we can see that many investors buy shares on a Mutual Fund of their choice and then the Mutual Fund Company will buy
