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mutual fund

mutual fund

82 3.5
A way to invest money where many people put money together and experts buy many investments
  • noun
  • /ˈmjuːtʃuəl fʌnd/
  • Specialized
translation icon : fondo mutuo
  • Investing in a mutual fund allows you to buy shares in a variety of securities without the need to manage them individually.
  • invest in mutual funds
  • mutual fund manager
  • mutual fund investment

Well, if you invest in a mutual fund, all the stocks in the mutual fund are held long.

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Examples

  • We're going to put you into mutual funds that have low fees rather than high fees.

  • We boosted confidence in money market mutual funds.

  • Could you help me pick a good mutual fund?

  • You know, you can do a lot better in mutual funds.

  • Have you ever heard of mutual funds?

  • Well, if you invest in a mutual fund, all the stocks in the mutual fund are held long.

  • Put the rest of the money in a tax-free mutual fund.

  • What is the difference between a hedge fund and a mutual fund from the perspective of the lay investor?

    Academic text (2015)
  • Or you can buy a mutual fund like Vanguard or Fidelity and have them manage your money for you.

  • He's got his money in no-load mutual funds.

Synonyms

fund
vsmutual fund
  • Specialized
458 3.1

Money that many people put together to buy stocks or bonds

is managed by professionals and invests in a wider variety of securities
index fund
vsmutual fund
  • Specialized
7 4.8

A fund that buys the same stocks or bonds as a market index to match its returns

is actively managed by professionals to invest across varied securities
investment fund
vsmutual fund
  • Specialized
6 3.4

A pool of money many people manage together to buy stocks and bonds to make money

is run by professionals using pooled money to buy many kinds of securities
investment company
vsmutual fund
  • Specialized
6 3.0

A business that collects money from many people and buys shares or bonds for them

is run by professionals and buys a varied mix of securities, not only issued
open-end fund
vsmutual fund
  • Specialized
6.9

A company that sells and buys shares directly at their daily price

continually allows buying and selling under professional management
open-end investment company
vsmutual fund
  • Specialized
8.1

A company that sells and buys back shares any time at a price based on its assets

operates under pooled professional management investing in varied securities
MMF
vsmutual fund
  • Specialized
6.9

A fund that holds safe short-term investments to give quick access and small returns

is managed for long term growth across varied securities rather than short term liquidity

How Complex

derivative instrument
  • Specialized
8.7
exchange traded fund
  • Specialized
2 6.1
mutual fund
  • Specialized
82 3.5
stock
3.5
to bond
  • Specialized
12 6.6

Surface Forms

mutual fund singular
mutual funds plural

Morphology

mutual + fund

The meaning is directly derivable from combining 'mutual' (shared or held in common) with 'fund' (a pool of money/financial vehicle): a fund that is shared by many investors. This compound follows a transparent noun + noun/adj+noun composition common across languages, so a B1 learner who knows both constituents is likely to infer the correct sense.

Etymology

Mutual fund comes from the words mutual, meaning 'shared', and fund, meaning 'a pool of money'. Imagine many people putting money into one pot while a professional chooses investments for everyone, so the term now means 'an investment where many people's money is joined and managed together'.