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A mutual fund is a financial tool made up of a pool of money collected from different investors to invest in securities like stocks, bonds, etc. Mutual funds are divided into several kinds of categories, representing the kinds of securities they invest in, their investment objectives, and the type of returns they seek.

Mutual funds are handled by professional portfolio managers, who allocate the funds and manage them carefully to create wealth for the fund’s investors in order to satisfy the investment objectives. The Securities Exchange Board of India regulates the mutual fund market in India to ensure responsible and transparent management of the investor’s wealth.