Mutual Funds
A mutual fund is an SEC-registered open-end investment company that pools money from many investors. It invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined holdings the mutual fund owns are known as its portfolio, which is managed by an SEC-registered investment adviser. Each mutual fund share represents an investor’s part ownership of the mutual fund’s portfolio and the income the portfolio generates.
Concept at a glance
Definition and explanation
A mutual fund is an SEC-registered open-end investment company that pools money from many investors. It invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined holdings the mutual fund owns are known as its portfolio, which is managed by an SEC-registered investment adviser. Each mutual fund share represents an investor’s part ownership of the mutual fund’s portfolio and the income the portfolio generates. [1]
Investors buy mutual fund shares through the fund itself, or through a financial intermediary (like a broker or investment adviser). The price investors pay for the mutual fund is the fund’s per share net asset value (NAV) plus any fees charged at the time of purchase. Mutual fund shares are “redeemable,” meaning investors can sell shares back to the fund at NAV minus any fees charged at the time of redemption. [1]
Source-supported connections
Frequently asked questions
What does Mutual Funds mean in the cited reference?
A mutual fund is an SEC-registered open-end investment company that pools money from many investors. It invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined holdings the mutual fund owns are known as its portfolio, which is managed by an SEC-registered investment adviser. Each mutual fund share represents an investor’s part ownership of the mutual fund’s portfolio and the income the portfolio generates. [1]
Mutual Funds connection map
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Sources and review dates
Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.