Mutual Funds
Mutual Fund
A pooled investment fund that collects money from many investors and invests it based on a stated strategy.
Also called: pooled fund
What it means
A mutual fund combines money from many investors and uses it to buy a portfolio of assets such as stocks or bonds. Unlike most ETFs, mutual funds are typically priced once per day after the market closes. Some are actively managed and some are designed to track an index.
Why it matters
Many retirement accounts and workplace plans use mutual funds, so understanding the structure helps people make sense of their investment options.