Thursday, September 13, 2018

What is a 'Mutual Fund'?

Mutual funds combine money from many investors to invest in a portfolio of stocks, bonds or other securities.
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Mutual Fund
A mutual fund is an investment vehicle made up of a pool of moneys collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets. Mutual funds are operated by professional money managers, who allocate the fund's investments and attempt to produce capital gains and/or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.
Breaking it Down:
Mutual funds give small or individual investors access to professionally managed portfolios of equities, bonds and... Read More
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How To Pick a Good Mutual Fund
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The Advantages Of Mutual Funds
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Related Definitions
Mutual Fund Custodian
A mutual fund custodian is a trust company, bank or similar financial institution responsible for holding and safeguarding the securities owned within a mutual fund. Read More
Family of Funds
A family of funds includes all the funds managed by one investment company. Read More
Reclassification
Reclassification is most commonly known as the process of changing a class of mutual funds. Read More
Index Fund
An index fund is a portfolio of stocks or bonds that is designed to mimic the performance of a market index. Read More
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