A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in a portfolio of stocks, bonds, money market instruments, and other assets. The fund is managed by a professional fund manager who decides which securities to buy and sell. Each investor in the mutual fund owns a proportionate share of the funds assets and participates proportionally in the gains or losses of the fund. Mutual funds offer small or individual investors access to professionally managed portfolios of equities, bonds, and other securities.

Here are some key features of mutual funds:

• Diversification: Mutual funds invest in a vast number of securities, which helps to lower the risk if one company fails.
• Professional Management: The fund managers do the research and select the securities, and monitor the performance.
• Affordability: Most mutual funds set a relatively low dollar amount for initial investment and subsequent purchases.
• Liquidity: Mutual fund investors can easily redeem their shares at any time, for the current net asset value (NAV) plus any redemption fees.
• Variety: Mutual funds offer a wide variety of investment strategies and styles.

Mutual funds are usually part of larger investment companies such as Fidelity Investments, Vanguard, T. Rowe Price, and Oppenheimer. Mutual fund ratings from independent sources can be a great resource for general information about a fund and a convenient way to compare mutual funds. However, it is important to keep in mind that ratings rely heavily on past fund performance, and yesterdays winners can just as quickly become tomorrows losers.

In summary, a mutual fund is a type of investment vehicle that pools money from multiple investors to invest in a portfolio of securities. Mutual funds offer small or individual investors access to professionally managed portfolios of equities, bonds, and other securities, and are usually part of larger investment companies.