Plain-English definitions, reviewed by an independent investor
Mutual Fund
A mutual fund pools investor money to buy a managed basket of securities, priced once daily after the market closes.
A mutual fund pools investor money to buy a managed basket of securities, priced once daily after the market closes.
(Professionally managed pool, priced at NAV daily)
Why it matters
It is the classic hands-off way to own many stocks through one purchase.
Common confusion
It trades only once a day and usually costs more than an equivalent ETF.
Frequently Asked Questions
Mutual fund vs ETF?
Funds price once daily at NAV and often charge higher fees; ETFs trade live and cheaper.
Are mutual funds safe?
Diversified funds are lower-risk than single stocks, but still fall with markets.