Mutual funds or investment funds are organizations that hold financial assets collectively. It is a group of investors who wish to invest their money for a common purpose.
A mutual fund can be set up as a trust (distributing all income to investors) or as a corporation (paying a portion of income to investors).
Each investor owns shares (trust) or stocks (corporation) proportional to the amount invested. Most of these are variable capital, which allows investors to buy or sell at any time.
Each mutual fund has its own characteristics: type of investment, fee structure and investment policy. It is important to know all these elements and consult a professional before investing.