Mutual Fund

Dictionary Says

Definition of 'Mutual Fund'

An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.

Investopedia Says

Investopedia explains 'Mutual Fund'

One of the main advantages of mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult (if not impossible) to create with a small amount of capital. Each shareholder participates proportionally in the gain or loss of the fund. Mutual fund units, or shares, are issued and can typically be purchased or redeemed as needed at the fund's current net asset value (NAV) per share, which is sometimes expressed as NAVPS.

Are you interested in Mutual Funds? Check out How To Pick A Good Mutual Fund and our Mutual Funds Tutorial for more information!

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  3. Mutual Funds Vs. ETFs: Small Cap Stocks

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  4. When To Sell A Mutual Fund

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  5. How To Pick A Good Mutual Fund

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  6. 5 Ways To Measure Mutual Fund Risk

    These statistical measurements highlight how to mitigate risk and increase rewards.
  7. Are Mutual Funds A Relic?

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  8. Analyzing Mutual Fund Risk

    Find out whether a fund's performance is a result of the manager's abilities, or just a fluke.
  9. How To Build Your Own Mutual Fund

    Creating your own mutual fund can save you the fees that cut into your profits. Find out how.
  10. 8 Reasons To Dump A Mutual Fund

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