A mutual fund is an investment vehicle where money is collected from lakhs of investors. This pool of money is then used to buy stocks (equity funds) or bonds (debt funds) or both (hybrid funds). There are more than 29 different types of mutual funds in India. They are managed by expert fund managers. The profits and losses on investment (shares or bonds) is shared by all unitholders (investors) equally. Hence the name mutual fund. Watch our detailed video on what is a mutual fund.