• A mutual fund is a type of investment vehicle that consists of a portfolio of stocks, bonds, or other securities.

  • Mutual funds provide small or individual investors with access to diversified, professionally managed portfolios.
  • Mutual funds fall into several categories representing the types of securities they invest in, their investment objectives, and the type of returns they seek.
  • Mutual funds charge annual fees, expense ratios, or commissions that may affect their overall returns.
  • Employer-sponsored retirement plans are usually invested in mutual funds.