Investor Glossary-mutual fundInvestor Glossary-mutual fundInvestor Glossary-mutual fundInvestor Glossary-mutual fundInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Mutual Fund

The HTML to link to this page
 

A mutual fund is an investment company designed to pool the funds of smaller investors and place them under professional management. A mutual fund allows small investors to diversify their portfolios. When a mutual fund is formed, it issues a prospectus detailing its intended investment strategy, and it is not permitted to deviate from that strategy without public disclosure. A mutual fund prospectus also details the fees investors will be charged, which can be substantial. In the US, a mutual fund is regulated by the SEC.

A mutual fund may invest in stocks, bonds, options, futures, currencies, and/or commodities. Although any specific mutual fund is required to follow a specific investing strategy, the range of strategies available is wide. A mutual fund such as an index fund may attempt to replicate market or sector index. A mutual fund may specialize in large-cap, small-cap or even micro-cap stocks. Investors seeking regular income can invest in a mutual fund that specialize in government bonds or, for the more aggressive, corporate debt.



Rate this mutual fund definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: balance sheet, Zero Cost Collar, LIBOR, implied volatility, wholly-owned subsidiary, inflation, per diem, Key Rate Duration, open position, limit order, 144a, ex-dividend, covered put, EBITDA, option premium, retained earnings, annual return, quality assurance, diluted share, labor relations, ex-dividend date, 401a, average price per share, deferred revenue, 1035 exchange, risk management, in escrow, command economy, required rate of return, liquidity ratio, minority interest, cancelled check, current ratio, reverse mortgage, FTSE, 1031 exchange, real GDP, FICO score, stock split, irrevocable trust, margin rate, APR, VIX, phantom income, stock market close, deferred tax, dividends payable, debt service coverage, class C shares


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use