Mutual funds are investments that pool money from many people to buy a mix of stocks, bonds, and other assets. They are managed by professionals who make investment choices for investors. Different types of mutual funds exist, like equity funds and bond funds, each with its own goals and risks. Before investing, consider your goals, risk tolerance, and time frame. Research a fund's performance, fees, and expenses. Mutual funds offer benefits like diversification and professional management, but they can have drawbacks like high fees and minimum investment requirements.