To commit resources to you must, Mutual funds first understand what they are, And how they work. Even more basic is your grasp of stocks and bonds. Stocks stand, Very quickly for shares of ownership in a and bonds, Public company are money lent to the government or company, On which you receive interest. We are presently concerned with these instruments, Since most mutual funds Allocate funds towards equities and/or mutual funds, Bonds. Simply act as intermediaries and facilitate investments in various securities stocks and bonds . The logical question here would be why Is it necessary for me to have a shared investment fund? why can t i just invest directly?