Fund

A fund is a pooled investment vehicle that collects capital from multiple investors to invest in a diversified portfolio of assets, including stocks, bonds, commodities, or real estate. Funds are managed by professional portfolio managers who make investment decisions on behalf of the investors. Common types of funds include mutual funds, exchange-traded funds (ETFs), hedge funds, and pension funds, each with specific investment strategies, risk profiles, and fee structures.

Example

An investor buys shares in a mutual fund that invests in a diversified mix of large-cap U.S. stocks, gaining exposure to multiple companies without buying individual shares directly.