Mutual funds pool the savings of investors and allow professional fund managers to invest those funds across different securities like stocks, bonds, and money market instruments. This helps investors achieve their financial goals while generating returns. The mutual fund industry in India is led by UTI as the largest fund manager, while private sector funds are growing. Mutual funds come in different types based on their structure (open-ended or close-ended) and investment objectives (equity, balanced, or debt). Investing through mutual funds provides benefits like professional management, risk diversification, liquidity, and tax efficiency. However, mutual funds also carry market risk and returns are not guaranteed.