Mutual Fund

A financial tool that enables you to put your money into a professionally managed portfolio of assets, which, depending on the fund, can include a range of stocks, bonds, or other financial instruments. A business that collects funds from a large number of investors and invests them in securities including stocks, bonds, and short-term debt. The mutual fund's portfolio is its collective holdings. In mutual funds, investors purchase shares. Each share is an investor's fractional ownership in the fund and the earnings it produces.