Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities, managed by professional fund managers.

When you invest in a mutual fund, your money is combined with that of other investors and used to purchase a diversified portfolio of securities. The value of your investment is based on the performance of the underlying securities.

Mutual funds can be classified into various categories based on their investment objectives, such as equity funds, debt funds, balanced funds, and index funds, among others.

The minimum investment required for mutual funds can vary depending on the fund and the type of account you are opening. Some funds may have minimum initial investment requirements, while others may have minimum subsequent investment requirements.

Investing in mutual funds offers several benefits, including capital gain, diversification, professional management, liquidity, and convenience.

Like all investments, mutual funds come with risks. These may include market risk, interest rate risk, credit risk, and liquidity risk, among others.

Mutual funds are subject to capital gains tax based on the holding period of the investment. Short-term capital gains (on investments held for less than three years) are taxed at a higher rate than long-term capital gains.

Mutual funds typically offer liquidity, allowing investors to redeem their investments at any time. However, certain funds may have redemption restrictions or penalties.

You can invest in mutual funds through various channels, including directly through the fund house, through a broker, or through online platforms.

Choosing the right mutual fund involves considering factors such as your investment goals, risk tolerance, investment horizon, and the fund's past performance, among others. It's advisable to consult with a financial advisor before making investment decisions.