Right, but in easy sense with basic picture: Mutual Fund is more like a professional and certified manager who will be taking all investment amounts that you and investors made. But what to do with all money? He invest all the money into well-diversified/portfolio of stocks on investors' behalf, it would be shares, bonds, debentures and all. And whatever the manager generates the returns from his portfolio, the money will return back to you all.
In practical, you will get returns when you request for withdrawal.
Moneycontrol website is a good source to find, compare and analyze the fund.
You'll have more questions, feel free to ask.
