What are mutual funds? A simple guide to these investment products

Updated On: 11 August, 2026 05:15 PM IST | Mumbai | mid-day online correspondent

The mutual fund houses are asset management companies who act as a custodian or trustee of the investor's money. They hire professionals to manage the money and investors gain the benefit of this expertise, diversification of funds in different stocks or asset classes based on the scheme and investment through a regulated structure

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Mutual funds are investment products through which people can invest in equity, debt, gold or real estate. Mutual fund effectively pools money from different consumers to invest in stocks, bonds or other asset classes.

For example, investors who want to invest in stock markets but are unsure about how to invest, which stocks to invest, get the exposure to the equity markets through a mutual fund.