Definition

Mutual Fund

Mutual Fund is a financial vehicle which involves pooling investments in the shares of many different joint stock (or publicly traded) companies, in order to reduce the risk and overhead costs associated with investing in corporate shares. An investor buys a unit in the mutual fund, and receives a pro-rated portion of the fund’s total income (including both dividends and capital gains).


Mutual fund is a fund formed by a group of individual investors, who pool their money to invest in securities, and usually handled by a professional investment manger.

Category: Economics
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