Mutual Funds

DEFINITION– An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund’s capital and attempt to produce capital gains and income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in its prospectus.

USelfDirect EXPLANATION – A mutual fund is a collection of assets, controlled by a fund manager, that has a specific purpose (Growth, Principal Preservation, Income Generation, etc)