Mutual funds are a popular investment choice for both novice and experienced investors. They offer a way to diversify your portfolio and potentially earn higher returns compared to traditional savings accounts. In this blog, we will explore how mutual funds work, their safety, and how much you should consider investing in them. Let's dive into the details and help you make informed investment decisions. How Do Mutual Funds Work? Mutual Funds Explained A mutual fund is a type of investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. The fund is managed by professional portfolio managers who make investment decisions based on the fund's objectives. Types of Mutual Funds Equity Funds : Invest primarily in stocks. They are suitable for investors seeking long-term growth. Bond Funds : Invest in fixed-income securities like government and corporate bonds. They are ideal for conservative investors seekin...