Why is a mutual fund also called a derivative?

A derivative is any instrument whose value rises from the value of some other investment,

In case of a mutual fund the value that it derives comes from the assets in its portfolio,

This is why many people also call mutual fund a derivative product,

Investors should understand that the change in value of a mutual fund is not on its own,

Only when the underlying investment changes in value the effect will be reflected in the mutual fund,