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A mutual fund is a type of professionally-managed collective investment scheme that pools money from many investors to purchase securities.[1] While there is no legal definition of mutual fund, the term is most commonly applied only to those collective investment schemes that are regulated, available to the general public and open-ended in nature. Hedge funds are not considered a type of mutual fund.

The term mutual fund is less widely used outside of the United States. For collective investment schemes outside of the United States, see articles on specific types of funds including open-ended investment companies, SICAVs, unitized insurance funds, unit trusts and Undertakings for Collective Investment in Transferable Securities.

In the United States, mutual funds must be registered with the Securities and Exchange Commission, overseen by a board of directors or board of trustees and managed by a registered investment advisor. They are not taxed on their income if they comply with certain requirements.

Mutual funds have both advantages and disadvantages compared to direct investing in individual securities. They have a long history in the United States. Today they play an important role in household finances.

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What are mutual fund shares?

Mutual fund shares are stocks of mutual funds, fractions of mutual funds just as companies have shares.


Mutual Fund?

form_title=Mutual Fund form_header=Meet your financial goals by investing your money in a mutual fund. Are you interested in hiring a broker to give you more information about mutual funds?= () Yes () No What type of mutual fund are you looking into investing in?=_ What is your budget for investing?=_


How can someone compare mutual funds?

Someone can compare mutual funds by using a MarketWatch tool for mutual fund comparison, Smart Money fund compare, and analyzing mutual funds at finance in yahoo.


What is an equity fund in a mutual fund?

A mutual fund which invests a minimum of 65% of its fund corpus in equity and equity related instruments is known as equity mutual fund. As in the case of other mutual funds, equity funds also carry risks as they investment in the stock market. However, they also ensure high returns. Equity funds are of different types such as Index Funds, Sector Funds, and Diversified Equity Funds.


What is equity oriented mutual fund?

What is an Equity Mutual Fund?A MF scheme that invests at least 65% of its fund corpus into equity and equity related instruments is called an equity mutual fund. Equity funds carry the most risk among all kinds of MFs because they invest in the stock market. This risk comes with the potential of high returns.Types of Equity mutual funds:Based on the investing style equity mutual funds are broadly classified into 4 categories:Equity Diversified fundsEquity Linked Saving Schemes (ELSS)Index funds & ETFsSectoral Funds

Related questions

What are the best mutual funds for young adults?

It is good for young adults to be interested in saving money nowadays. A few good mutual funds are Rochester fund, Riversource, and Prudent Bear Fund.


Can Indian mutual fund invest in shares and securities abroad?

Yes, they can. But, not all mutual funds can invest in shares and securities abroad. They can only do so, if the mutual fund scheme has it in the fund objectives.


What are mutual fund shares?

Mutual fund shares are stocks of mutual funds, fractions of mutual funds just as companies have shares.


Mutual Fund?

form_title=Mutual Fund form_header=Meet your financial goals by investing your money in a mutual fund. Are you interested in hiring a broker to give you more information about mutual funds?= () Yes () No What type of mutual fund are you looking into investing in?=_ What is your budget for investing?=_


How can someone compare mutual funds?

Someone can compare mutual funds by using a MarketWatch tool for mutual fund comparison, Smart Money fund compare, and analyzing mutual funds at finance in yahoo.


Are open-end funds the same as mutual funds?

Often referred to as the mutual fund industry, the open-end fund industry comprises about 95 percent of the mutual fund market


How does hedge fund differs from mutual fund?

Hedge funds and mutual funds are both managed portfolio in which securities are picked by a fund manager. However hedge funds are more aggressively managed as compared to the mutual fund. They can take speculative positions in the derivative securities .Hedge funds also differs from mutual fund in their availability, they are available to only specific investors .There are many investment companies that invest in hedge fund and mutual fund of which Reliance mutual fund is one of the good one.


What is an equity fund in a mutual fund?

A mutual fund which invests a minimum of 65% of its fund corpus in equity and equity related instruments is known as equity mutual fund. As in the case of other mutual funds, equity funds also carry risks as they investment in the stock market. However, they also ensure high returns. Equity funds are of different types such as Index Funds, Sector Funds, and Diversified Equity Funds.


What is equity oriented mutual fund?

What is an Equity Mutual Fund?A MF scheme that invests at least 65% of its fund corpus into equity and equity related instruments is called an equity mutual fund. Equity funds carry the most risk among all kinds of MFs because they invest in the stock market. This risk comes with the potential of high returns.Types of Equity mutual funds:Based on the investing style equity mutual funds are broadly classified into 4 categories:Equity Diversified fundsEquity Linked Saving Schemes (ELSS)Index funds & ETFsSectoral Funds


What are people who invest in mutual funds called?

They are called Mutual Fund Investors or Mutual Fund Unit Holders.


Can you draw funds from a Mutal Fund?

If it is an open ended mutual fund - Yes, you can draw the funds


How do fund of funds classify?

Mutual Funds are classified as * Equity Mutual Funds * Equity Diversified Funds * Equity Linked Savings Schemes * Large Cap funds * Mid cap funds * Small cap funds * Contra Funds * Sectoral Funds * Thematic Funds * etc... * Debt Mutual Funds * Bond Mutual Funds * Hedge Funds * Fund of Funds * etc...