Mutual Fund

A mutual fund is a type of investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. Each investor in the mutual fund owns a share of the fund's overall portfolio, and is entitled to a portion of the fund's investment returns.

Mutual funds are managed by professional fund managers, who are responsible for selecting and managing the fund's investments, based on the fund's investment objective and investment strategy. Mutual funds can offer investors a way to invest in a diversified portfolio of securities, without the need to make individual investment decisions or conduct research on individual securities.

Mutual funds can be actively managed or passively managed, and can invest in a wide variety of asset classes, sectors, and regions. They can also have different investment objectives, such as income, growth, or a combination of the two.

Mutual funds are bought and sold through investment brokerages, and are subject to fees and expenses, such as management fees, administrative fees, and operating expenses. It's important to carefully consider the fees and expenses associated with a mutual fund before investing, as these costs can have a significant impact on investment returns over time.