Mutual funds belong to a group of financial intermediaries known as investment companies, which are in the business of collecting funds from investors and pooling them for the purpose of building a portfolio of securities according to stated...

US UNIT TRUST. There are many types. General equity funds invest in a range of equities with the aim of outperforming the market as measured by, for example, STANDARD & POOR’S 500 index. Index funds are invested in the leading stocks which...

company that invests the funds of its subscribers in diversified securities and in return issues units representing shares in those holdings. It differs from the investment trust (q.v.), which issues shares in its own capital. In contrast to closed-end...

Company that invests the funds of its subscribers in diversified securities and issues units representing shares in those holdings. It differs from an investment trust, which issues shares in the company itself. While investment trusts have a fixed...

This article deals with U.S. mutual funds. For other forms of mutual investment, see Collective investment schemes. A mutual fund is a professionally-managed form of collective investments that pools money from many investors and invests it in stocks,...