mutual fund

noun

: 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 in a Sentence

She invested her money in a mutual fund.
Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Moody’s estimates that almost 90% of corporate equities and mutual funds are held by households in the top 20% of the income distribution. Richard Kestenbaum, Forbes.com, 8 July 2026 Decades ago, actively managed mutual funds, where professionals pick investments and charge for doing so, were dominant. Paul Kiel, ProPublica, 8 July 2026 Their creation-and-redemption activity also helps keep ETFs liquid and generally more tax efficient than mutual funds. Debbie Carlson, Encyclopedia Britannica, 7 July 2026 These accounts are taxed at the long-term capital gains rate, lower than income taxes, so a brokerage account that invests in low- or no-divedend mutual funds could generate more money by the time a child reaches 18. Irene Wright, USA Today, 7 July 2026 See All Example Sentences for mutual fund

Word History

First Known Use

1932, in the meaning defined above

Time Traveler
The first known use of mutual fund was in 1932

Browse Nearby Words

Cite this Entry

“Mutual fund.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/mutual%20fund. Accessed 11 Jul. 2026.

Legal Definition

mutual fund

see also:

More from Merriam-Webster on mutual fund

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

More from Merriam-Webster