A pooled investment vehicle managed by a professional fund manager.
Investors buy shares in the fund, which then invests in stocks, bonds, or other assets per its mandate. Priced once daily at NAV. Active mutual funds aim to beat benchmarks; passive (index) funds track them at lower cost. Globally, mutual funds manage tens of trillions of dollars.
A pooled investment vehicle managed by a professional fund manager. Investors buy shares in the fund, which then invests in stocks, bonds, or other assets per its mandate. Priced once daily at NAV. Active mutual funds aim to beat benchmarks; passive (index) funds track them at lower cost. Globally, mutual funds manage tens of trillions of dollars.
In funds, Mutual Fund is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Investors buy shares in the fund, which then invests in stocks, bonds, or other assets per its mandate. Priced once daily at NAV.
A fund that trades on stock exchanges like a single stock.
A passive fund designed to replicate a market index's performance.
Annual cost of owning a fund, expressed as a percentage of assets.
A fund's per-share value, calculated as (assets − liabilities) ÷ shares outstanding.
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