The answer is:
provide diversification for a single investment
pools the assets of multiple investors
In a mutual funds, a group of investors gathered together their assets and let one person or organization to handle all the investments on their behalf. In return , that person/organization is entitled to small percentage of the income that gained by the investors.
Because of this, when a person sign up for a mutual fund, that person can diversify his investments by simply giving his/her money to a single institute without having to manage it.
