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Mutual Funds




Mutual funds are the most common type of pooled investment.

Funds "slice and dice" many types of investments - stocks, bonds, money-market instruments, and other securities - to offer diversified portfolios that would be difficult for investors to create with a small amount of capital on their own.

Mutual funds carry a number of costs that can lower your investment returns.


Additional Comments:

There are various categories of mutual funds , corresponding to the various asset classes.

For example, there are money-market mutual funds (representing cash equivalents), bond funds (representing fixed income), stock funds (representing equity), and real estate and commodity funds (representing the alternative asset class).

Related Terms:

No Load Fund
Mutual Fund offered by an open end investment company that imposes no sales charge (load) on ...

Actively Managed Funds
In most actively managed funds, the fund manager makes specific investments with the goal of outperforming ...

Closed-Ended Funds
Closed-ended funds, like their more populous and popular open-ended cousins, are investment companies set up to ...





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