mutual fund

American  

noun

1. an investment company that issues shares continuously and is obligated to repurchase them from shareholders on demand.

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mutual fund British  

noun

1. British equivalent: unit trust.  an investment trust that issues units for public sale, the holders of which are creditors and not shareholders with their interests represented by a trust company independent of the issuing agency

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mutual fund Cultural  

1. A company organized for the purpose of making investments. A mutual fund gets its capital stock from private individual investors, who, in effect, allow the mutual fund to decide where to invest their money.

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Etymology

Origin of mutual fund

First recorded in 1790–1800

Example Sentences

Both investment vehicles receive dividends, but holders of old-fashioned mutual funds also can get capital-gains distributions when other owners sell.

From The Wall Street Journal

Investors continued to turn from active to passive management and from mutual funds to ETFs.

From Barron's

The firm now manages about $7 billion through mutual funds, ETFs and for individual and institutional clients using value strategies.

From MarketWatch

If you have money in a broadly based emerging-markets mutual fund or exchange-traded fund, about half your money — yes, really — is being wagered on the stocks of just two countries: China and Taiwan.

From MarketWatch

Managers of large-cap funds took most of the top positions in our latest Winners’ Circle review of the top-performing actively managed U.S.-stock mutual funds.

From The Wall Street Journal

Related Words

• bond fund
• closed-end fund
• investment fund
• retirement plan