The mechanism for pooling resources from the public by issuing units to them and investing the funds so collected in securities in accordance with objectives disclosed in an document, is called

A mutual fund is a mechanism for pooling resources by issuing units to the investors and investing funds in securities, in accordance with objectives as disclosed in the offer document. Mutual fund units are issued to the investors in accordance with a quantum of money invested by them. Investors of mutual funds are known as unit holders.