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Word of the Week:
Definition: A mutual fund is a professionally managed fund that pools lots of investors’ money in order to buy a basket of investments. A mutual fund is an investment option that pools the money of many investors to buy stocks, bonds, and other securities. A mutual fund portfolio is professionally managed, comparatively affordable, and is subject to strong oversight and regulation. Most mutual funds invest in stocks, bonds, or a mix of the two.
Key Takeaway: A mutual fund pools investors’ money in order to buy a diversified portfolio of securities.
Fun Fact: The oldest mutual fund is the MFS Massachusetts Investors Trust fund, which launched in 1924.
Watch the video below for another look at this concept.
What the Heck is a Mutual Fund? (Two Cents)
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