A professionally managed investment pool in which investors in the fund typically each have a pro-rata claim on the income and value of the fund. It is a pool of money managed by a professional Fund Manager.

It is a trust that collects money from a number of investors who share a common investment objective (who want the same outcome from the investment – safety/growth etc.). A Mutual Fund invests this money in equities, bonds, money market instruments and/or other securities. The profits or incomes (mainly dividend and interest) generated from this collective investment is distributed amongst the investors after deducting applicable expenses in the ratio of their investments.