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Mutual funds are investment vehicles that pool money from multiple investors to collectively invest in a diversified portfolio of stocks, bonds, or other securities. Managed by professional fund managers, mutual funds offer individuals a way to access a wide range of assets with relatively small investments. Investors buy shares in the fund, and the fund's value fluctuates based on the performance of its underlying holdings. This structure allows for risk reduction through diversification and professional management. Mutual funds provide opportunities for individuals to participate in the financial markets without requiring extensive knowledge or active management of individual securities.

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