What is a mutual fund?
1. A type of collective investment scheme that pools money from many investors and invests it in stocks, bonds or other money market instruments.
2. It is a subsidiary of a bank or financial company created specially to raise money to be invested in a particular industry such as housing, infrastructure, etc.
3. When several banks and financial companies come together and create a common pool of money to fund mega infrastructural project like bridges, roads, power plants, etc., the common pool is known as mutual fund.