What is a mutual fund?
The Bankrate.com financial term of the day is: "Mutual Fund"
Want to invest but haven't got a clue where to put your money? Are you bewildered by all the choices? A mutual fund is an investment vehicle that allows you to buy into a diversified basket of assets, including stocks, bonds and other securities. You let a professional money manager decide on the mix.
With a mutual fund, you can meet general investment goals such as getting in on technology stocks or shoveling some of your savings into bonds. You leave the picking to the pros and enjoy less risk than you would by, for example, betting your retirement on just one or two stocks.
To learn about the various types of investments, visit the Investments section at Bankrate.com.