Mutual funds are investment products that pool money from many investors and invest in stocks, bonds, short-term money market instruments, other securities, or other investment strategies. These funds are typically managed by an investment manager who invests the pooled money on behalf of the investors. Investors in mutual funds are typically offered units that represent an ownership stake in the fund. As the fund buys and sells securities, the value of the mutual fund unit will vary according to the performance of the underlying investments.