mutual fund noun
: a type of investment in which the money of many people is used to buy stock from many different companies
: 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
- She invested her money in a mutual fund.
First Known Use of MUTUAL FUND
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
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