When you buy a mutual fund, you buy a stake in everything the fund invests in and any income those investments generate.
A mutual fund is often managed by a fund manager. When you buy a mutual fund, you buy a stake in everything the fund invests in and any income those investments generate. Mutual funds make it easy to build a diversified portfolio and get professional management, so you don't have to research, buy, and track every security in the fund on your own.