mutual fund
noun
an investment company that issues shares continuously and is obligated to repurchase them from shareholders on demand.
Also called
open-end investment company.
Compare
closed-end investment company.
Origin of mutual fund
First recorded in 1790–1800
Words nearby mutual fund
British Dictionary definitions for mutual fund
mutual fund
noun
US and Canadian
an investment trust that issues units for public sale, the holders of which are creditors and not shareholders with their interests represented by a trust company independent of the issuing agency
British equivalent: unit trust
Cultural definitions for mutual fund
mutual fund
A company organized for the purpose of making investments. A mutual fund gets its capital stock from private individual investors, who, in effect, allow the mutual fund to decide where to invest their money.