Mutual Fund
A mutual fud, often called a managed fund in Australia, is a pool of money collected from many investors and managed by a professional to buy a range of assets.
Quick Reference:
Profesionally managed. Pool of money. Management costs.
Expanded Explanation:
When you invest in a mutual fund, your money is combined with money from thousands fo other investors. A professional fund manager decides what to buy and sell. This can provide diversification, expertise, and access to investment that might be difficult to manage alone.
The downside is that mutual funds often charge higher fees than index funds or ETFs. These fees can eat into long term returns. Still, many investors like the convenience of having professionals handle their investment.