Glossary A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 1 | 3 | 4 | 5 Definitions by InvestorWords.com   What is...? mutual fund An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Benefits include diversification and professional money management. Shares are issued and redeemed on demand, based on the fund's net asset value which is determined at the end of each trading session. A closed-end fund is often incorrectly referred to as a mutual fund, but is actually an investment trust. Types of funds include aggressive growth fund, asset allocation fund, balanced fund, bond fund, capital appreciation fund, closed fund, equity fund, global fund, international fund, growth fund, income fund, growth and income fund, index fund, money market fund, municipal bond fund, prime rate fund, regional fund, sector fund, specialty fund, stock fund, and tax-free bond fund. see also 12b-1 fee, automatic reinvestment plan, automatic withdrawal, average price per share, load, investment company, diversified investment company, dollar cost averaging, exchange privilege, expense ratio, fund manager, fund of funds, hedge fund, management company, open-end management company, management fee, prospectus, statement of additional information, reinvestment privilege, style, switching, uncertificated shares, voluntary accumulation plan, window-dressing. Copyright ©2009 by InvestorGuide.com. All Rights Reserved.