Mutual Funds are investment portfolios created by mixing varied assets like stocks, bonds, and other securities into a single portfolio as per the goal of the fund. The assets in a mutual fund are diversified, i.e., invested in multiple stocks and other securities to minimize the risk level. These are managed by fund managers and categorized into different funds according to the needs of investors, like equity funds, debt funds, hybrid funds, index funds, small cap, multi-cap, large cap etc. When you buy a mutual fund, you buy it according to the NAV value per unit of the fund, but not according to the prices of different stocks of that fund.
