MF is a scheme in which several people invest their money for a common financial goal.
Mutual funds are a type of investment that takes money from many investors and uses it to make investments based on a stated investment objective.
The collected money may be invested in debt market, equity market or money market depending upon the objective of the fund.
Each shareholder in the mutual fund participates proportionally (based upon the number of shares owned) in the gain or loss of the fund.
In short, Mutual funds are institutions that collect money from several sources – individuals or institutions by issuing units, invest them on behalf with predetermined investment objective and manage the same for a fee