Mutual Fund

[Marquetta]

Mutual fund is a type of investment vehicle that pools money from multiple investors and invests the funds in a portfolio of securities, such as stocks or bonds. The funds goal is to generate a steady income stream by holding onto the securities for an extended period of time, with a return on investment that is typically higher than the cost of capital. The funds manager is responsible for selecting and managing the securities in the portfolio, while investors are responsible for contributing a certain amount of money to the fund on an ongoing basis. Mutual funds can be bought and sold like individual stocks, allowing investors to trade in and out of the fund based on their own investment goals and risk tolerance.