What is fiMutual funds are financial institutions that lend the funds that savers provide to borrowers.ancial institutions that lend the funds that savers provide to borrowers?

Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. Instead of lending funds directly, they invest the collected capital to generate returns for their investors. This allows individuals to access a professionally managed investment option while spreading risk across various assets. Investors buy shares in the mutual fund, and their returns depend on the fund's performance.