Investing Dictionary
Basics

What is Mutual Fund?

A pool of money from many investors managed by a professional

Full Explanation

A mutual fund collects money from thousands of investors and a fund manager picks stocks or bonds to invest in. Unlike ETFs, mutual funds are priced once per day at market close, not throughout the day.

Pro Tip

Check the expense ratio. High fees eat into your returns over time.

Related Basics Terms

Day Trading

Buying and selling stocks within the same day

Dividend

Cash a company pays you just for owning their stock

ETF

A basket of many stocks in one

Federal Reserve

The US central bank that controls interest rates and the money supply

View all Basics terms →

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