GLOSSARY TERM
Mutual Fund
A mutual fund is a pooled investment fund where many investors’ money is combined and invested together.
What does this mean in practice?
The fund invests that shared pool of money into stocks, bonds or other assets based on a chosen strategy. Unlike ETFs, mutual funds are usually bought and sold at the fund’s end-of-day price rather than traded throughout the day on the stock exchange.
Example
You invest in a global stock mutual fund through your bank or investment platform as part of a monthly investing plan. Your money is pooled together with money from many other investors.
Why it matters
Mutual funds are one of the most common ways beginners start investing. They can make diversification and regular investing easy, especially for people who prefer a simple monthly plan.
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