mutual fund

mutual fund

noun

: a type of investment in which the money of many people is used to buy stock from many different companies

Full Definition of MUTUAL FUND

:  an open-end investment company that invests money of its shareholders in a usually diversified group of securities of other corporations

Examples of MUTUAL FUND

1. She invested her money in a mutual fund.

First Known Use of MUTUAL FUND

1934

mutual fund

noun    (Concise Encyclopedia)

Company that invests the funds of its subscribers in diversified securities and issues units representing shares in those holdings. It differs from an investment trust, which issues shares in the company itself. While investment trusts have a fixed capitalization and a limited number of shares for sale, mutual funds make a continuous offering of new shares at net asset value (plus a sales charge) and redeem their shares on demand at net asset value, determined daily by the market value of the securities they hold.

Variants of MUTUAL FUND

mutual fund or unit trust or open-end trust