A financial vehicle that pools assets from shareholders to invest in securities like stocks, bonds, money market instruments, and other assets.
The funds are actively managed by professional money managers. These individuals seek to generate returns either throw capital gains or income flows.
All allocations are determined by the fund's focus as laid out in the prospectus.
Some of the larger mutual fund companies:
- Fidelity Investments
- Vanguard
- T. Rowe Price
- Oppenheimer
Different Types of Funds:
- Money Market Funds
- Stock Funds
- Bond Funds
- Target Date Funds
Mutual Funds are purchased by investors from the company itself or through brokers who operate on the company's behalf.