Mutual funds are overseen by a fund manager, who will invest in various stocks, bonds and assets on your behalf.
This type of investment is seen as less risky than a single investment, as you’re splitting your money into different assets. You’ll also benefit from the guidance of a financial expert, who’ll make decisions based on their experience and market research.
The value of investments, and the income from them, can fall as well as rise. Therefore, they’re not guaranteed. The investor might not always get back their initial investment.