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Mutual funds are set up by a fund manager who pools the money of many investors to invest in stocks, bonds, and other types of investments. The mutual fund is managed by the fund manager, who develops an investment strategy with the help of a team of financial professionals.

Mutual fund schemes come in a variety of types, each with its own investment strategy and goals. The most common scheme categories are equity funds, debt funds, hybrid funds, index funds and sector-specific funds.