mutual fund

noun

: an open-end investment company that invests money of its shareholders in a usually diversified group of securities of other corporations

Examples of mutual fund in a Sentence

She invested her money in a mutual fund.
Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
One item on the FINRA quiz tested consumers on their understanding of diversification, a fundamental concept of investing: True or false: Buying a single company’s stock usually provides a safer return than a stock mutual fund. Daniel De Visé, USA Today, 20 Apr. 2025 Zero commission fees for stock, ETF, options trades and some mutual funds; zero transaction fees for over 3,400 mutual funds; $0.65 per options contract. Keagan Ostop, CNBC, 18 Apr. 2025 Meanwhile, the bottom half of American households own less than 1% of stocks and mutual fund shares. Teresa Ghilarducci, Forbes.com, 18 Apr. 2025 Apple stock, a staple investment of many mutual funds and 401(k) funds, dropped by another 5 percent on Tuesday, which allowed Microsoft to surpass it as the world’s most valuable public company. Alexander Bolton, The Hill, 9 Apr. 2025 See All Example Sentences for mutual fund

Word History

First Known Use

1932, in the meaning defined above

Time Traveler
The first known use of mutual fund was in 1932

Browse Nearby Words

Cite this Entry

“Mutual fund.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/mutual%20fund. Accessed 26 Apr. 2025.

Legal Definition

mutual fund

see fund sense 2

More from Merriam-Webster on mutual fund

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!