What is mutual funds?

A mutual fund is an investment mechanism under which the Asset Management Companies (AMCs) pool in money from a large number of investors like you who share a common investment goal. The money is then invested in equities, stocks, bonds, securities and other assets -- for which units are issued to you. These units represent the portion of the fund/holding(s). Then the return generated from this combined investment is given to you (investor) depending on the amount you have invested.