To many people, Mutual Funds can look complicated or Risky, but We are going to try it simplify for you. Basically, the money combined in by a large number of investors is what makes up a Mutual Fund. This fund is managed by a professional fund manager.
It is a trust that collects money from a number of investors who share a common investment
The income / profits generated from these investments are calculated according to the "Net Asset Value" of the scheme and then distributed among the investors proportionately after deducting certain expenses.