Mutual funds meaning: A mutual fund pools

A mutual fund pools money from many investors to buy a diversified portfolio of stocks, bonds, or other securities. Know types, benefits & how to invert in Mutual Funds. Mutual funds are an accessible investment vehicle which provides average or advanced investors with a wide range of exposure and diversification to a vast swathe of investment options from... Meaning and definition of mutual funds A mutual fund is a financial instrument. Its underlying portfolio may consist of stocks, bonds, commodities, etc., and it pools money from various investors to build this portfolio. In other words, mutual funds consist of a large sum of money pooled by several investors and invested in the fund’s underlying portfolio. Professional fund managers oversee investments in mutual funds and take calls aligning with the fund’s objective. Mutual Funds can be categorized on the basis of Asset Class, Types of Securities Opted, Investment Goals, Risk Factors, and so on.