Fund Basics
Mutual Fund
Definition
What is Mutual Fund?
A pooled investment vehicle that combines money from many investors into one professionally managed portfolio.
Example in practice
How This Looks in Practice
A fund manager may combine $10,000 from one investor with contributions from thousands of others to buy treasury bills, bonds, or shares.
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Related Terms
Fund Basics
Unit
A proportional ownership interest in a mutual fund.
Fund BasicsNet Asset Value
The value of a fund's assets minus its liabilities, usually expressed in total and per unit.
Fund BasicsAssets Under Management
The total market value of investments managed by a fund or investment manager.
Fund TypesMoney Market Fund
A mutual fund that invests mainly in short-term, relatively liquid instruments such as treasury bills and deposits.