What is a Mutual fund in simple

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A mutual fund is a type of investment, where the mutual fund is an asset management company, where it collects money from small investors and it will invest in various assets like shares, bonds, money market, and other financial instruments, mutual funds are professionally managed and fetch you stable returns, the risk in mutual funds depends upon the type you choose, whereas in equity mutual funds you have to bear the high risk and that will fetch you a high return, whereas in debt funds the risk is minimal but returns are low but not lower than the bank returns.

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