1. Structure: Mutual funds are structured as open-end investment companies, which means they continuously issue and redeem shares based on investor demand. This allows investors to buy or sell shares at the net asset value (NAV) of the fund, which is calculated at the end of each trading day.

2. Diversification: Mutual funds offer diversification by investing in a variety of securities. By pooling money from multiple investors, a mutual fund can invest in a wide range of assets, reducing the risk associated with investing in a single security.

3. Professional Management: Mutual funds are managed by professional fund managers who have expertise in selecting and managing investments. These managers conduct research and analysis to make informed decisions on which securities to buy or sell within the fund.

4. Types of Mutual Funds: There are various types of mutual funds, including equity funds (investing in stocks), bond funds (investing in bonds), money market funds (investing in short-term debt securities), index funds (tracking a specific market index), and sector-specific funds (focusing on a particular industry or sector).

5. Risk and Return: Mutual funds come with varying levels of risk and potential returns. Equity funds tend to have higher risk and potential for higher returns, while bond funds offer lower risk and potential for more stable income. It’s important to consider your risk tolerance and investment goals when choosing a mutual fund.

6. Fees and Expenses: Mutual funds charge fees and expenses, which can include management fees, administrative fees, and distribution fees (known as loads). These fees are deducted from the fund’s assets and can impact the overall returns for investors. It’s important to carefully review the fund’s prospectus to understand the fees involved.

7. Investment Minimums: Mutual funds typically have minimum investment requirements, which can vary depending on the fund. Some funds may have higher minimums for initial investments, while others may offer lower minimums for subsequent investments.

8. Performance and Returns: Mutual funds report their performance in terms of net asset value (NAV) and returns, which can be measured over different time periods (e.g., one year, three years, five years). It’s important to review a fund’s historical performance but also consider that past performance does not guarantee future results.

Before investing in a mutual fund, it’s important to carefully review the fund’s prospectus, which provides detailed information about the fund’s investment objectives, strategies, risks, fees, and historical performance. It’s also recommended to consult with a financial advisor to ensure the fund aligns with your investment goals and risk tolerance.