What is Mutual Fund?

A mutual fund is an investment fund that is made up of a large pool of capital collected from many investors in order to invest in a large number of asset types including stocks, bonds, and derivatives instruments. Mutual funds are managed by investment management experts whose job is to allocate the fund's assets to produce strong investment returns for the fund's investors. Mutual funds enable individual investors to access a professionally managed portfolio of various assets that allow each shareholder to proportionally contribute to the gains or losses of the entire fund.