Mutual Fund
A pool of money from many investors, managed across many assets.
A mutual fund collects money from thousands of investors and a professional manager invests it across dozens of stocks or bonds. You get instant diversification — owning a tiny slice of many companies instead of betting everything on one.
Example
₹1,000 on its own buys one share of one company. The same ₹1,000 in a mutual fund buys a sliver of 40+ companies.