Types of mutual funds: Thesefundsinvest in U

Thesefundsinvest in U.S. or foreign stocks. Some are indexfunds, while others are actively managed. Typically, they're defined by the size of the companies they invest in ("small-cap," "mid-cap," or "large-cap") or their investment objective ("growth," "income," etc.). Amutualfundis a pool of money collected from many investors for the purpose of investing in stocks, bonds, or other securities. Amutualfundpools money from multiple parties and invests it in a diversified basket of securities and other assets. There are manytypesofmutual funds, including stockfunds, bondfunds, money marketfunds, balancedfundsand more. Eachfundtypecan play a unique role in a well-rounded investment portfolio.