Mutual fund意思

"Mutual fund" is a type of investment vehicle that pools money from many investors and invests it in a variety of assets, such as stocks, bonds, or other securities. The goal of a mutual fund is to grow the value of the fund by selecting a mix of investments that will perform well over time.

Mutual funds are managed by professional money managers who make investment decisions on behalf of the fund's investors. These managers may follow a variety of investment strategies, ranging from actively seeking to outperform the market to simply tracking the performance of a particular index.

Investors in a mutual fund own shares of the fund and are entitled to a proportionate share of the fund's assets and profits. The value of a mutual fund share, known as the net asset value (NAV), is calculated by dividing the total value of the fund's assets by the number of shares outstanding.

Mutual funds offer several advantages to investors, including diversification, which can help spread out risk, and professional management. They also offer a relatively low minimum investment amount, making them accessible to a wide range of investors.

However, mutual funds also have some drawbacks, including fees and expenses, which can eat into returns, and the potential for underperformance if the fund's managers make poor investment decisions.

Overall, mutual funds can be a good choice for investors who are looking for a way to diversify their portfolio and who prefer to leave the investment decisions to professionals.