Mutual Fund definition

An American term for a fund that takes the form of a joint stock company. The Fund represents a portfolio of shares, bonds and / or cash that the investment company manages on behalf and in agreement with a number of investors.

When investors buy shares in the fund, they acquire a stake in a broad investment portfolio, which they own together with the other shareholders of the fund.

The mutual fund manager invests the entrusted funds in accordance with the investment objectives that are in the prospectus of the fund.