Mutual fund is a vehicle that enables a collective group of individuals to a. Pool their investible surplus funds and collectively invest in instruments / assets for a common investment objective. B. Optimize the Expertise and understanding of a fund manager, A capacity that individually they may not have c. Benefit from the economies of scale which size enables and does not represent available on an individual basis allocating funds towards a collective investment scheme is like an investment made by a collective. An individual as a single investor is prone to have lesser Sum of funds at disposal a cluster, Than say of friends put let s, Together. Now assume that this group of individuals is a novice in investing and so the group turns over the pooled funds to an expert to craft their money work for them. This represents a professional Wealth management organization does for mutual funds. The amc invests the investors money representing them into various assets towards a common investment objective. Hence, A mutual, Technically speaking fund is an investment vehicle which pools investors money and commits the same for and acting for investors, Into stocks, Bonds, Cash management tools and other assets. The money is obtained by the amc with a promise demonstrating that it is destined to be dedicated to a particular manner by a professional manager Frequently identified as fund managers . The fund managers are expected to honour this promise. The sebi and the board of trustees ensure that this actually happens.