Mutual funds are collective investment schemes that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. Managed by professional money managers, these funds aim to achieve specific financial objectives, such as income generation or capital growth, by managing the assets based on the fund's investment strategy. Mutual funds are characterized by daily trading at the net asset value, low minimum investments, and the benefit of professional management, making them suitable for investors seeking diversified investment options without the need to manage individual securities.
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