What Is Mutual Fund?
Definition and plain-English explanation of "Mutual Fund"
A mutual fund pools money from many investors to buy a diversified portfolio of stocks, bonds, or other assets, managed by a professional fund manager. Unlike ETFs, mutual funds are priced once per day after market close. Actively managed mutual funds often charge higher fees and historically struggle to beat low-cost index funds over the long term.
Related Terms
A stock (also called a share or equity) is a fractional ownership stake in a company. When you buy a...
The stock market is a collection of exchanges where buyers and sellers trade shares of publicly list...
A bull market is a period in which stock prices are rising or expected to rise — generally defined a...
A bear market is a period of declining stock prices, typically defined as a drop of 20% or more from...
Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.