What Is A Mutual Fund?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

A mutual fund is one which is made up of money from lots of different individual investors, and then managed by a professional portfolio manager. Mutual funds invest in all the usual assets such as:

  • Bonds
  • Equities
  • Derivatives

The amount an investor gains or loses in the fund is directly proportional to the amount they invest into the fund. Mutual funds typically have a target level of return and usually charge a management fee of 1-2% per annum.

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.