expression

mutual fund

a pooled investment managed on behalf of many investors

In more detail

a type of investment where money from many people is combined and managed by professionals to buy stocks, bonds, or other assets

Examples

Many people invest in mutual funds for their retirement savings.
She decided to put her money into a mutual fund rather than buying individual stocks.

How to use mutual fund

Mutual fund is a standard financial term used in investment and banking contexts to describe a collective investment vehicle. It emphasizes the pooled nature of the investment and professional management. The term is commonly used in both formal financial documents and everyday conversations about personal investments.

Common phrases

invest in a mutual fund
mutual fund manager
mutual fund performance
mutual fund fees
diversified mutual fund
open-ended mutual fund

Synonyms

pooled investment fund · investment fund · managed fund · unit trust

Word family

fund · mutual

A common mistake

Learners sometimes confuse mutual funds with ETFs (exchange-traded funds) or stocks; while similar in that they offer diversification, mutual funds are actively managed and priced once daily, whereas ETFs trade like stocks throughout the day.

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