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

When he left the firm, Johnson associated with the founders of Boston’s MFS Investment Management, which created the first mutual fund in 1924, and George Putnam, founder of Putnam Investments.

From Barron's • May 1, 2026

Closed-end funds, a relatively obscure type of mutual fund, sell a fixed number of fund shares, then trade on an exchange like a stock.

From Barron's • May 1, 2026

You’ll also want to track the expense ratio of each ETF or mutual fund in your portfolio.

From MarketWatch • Apr. 28, 2026

A mutual fund or ETF offers greater simplicity and convenience.

From The Wall Street Journal • Apr. 10, 2026

Jim went into the insurance and mutual fund business, and from there he made the switch to banking.

From "Class Matters" by The New York Times

Related Words

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