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.