Mutual fund

A mutual fund is a pooled investment vehicle that collects money from many investors and uses it to buy a portfolio of stocks, bonds, or other assets on their behalf. Investors buy shares of the fund itself rather than picking the underlying holdings themselves.

Unlike an ETF, a mutual fund does not trade throughout the day. Orders are collected and filled once per day at the fund's net asset value, calculated after the market closes. Mutual funds are more often actively managed than ETFs, which typically means higher ongoing fees in exchange for a manager trying to beat the market rather than simply track it.