Last updated: 

Jump to Topic:

What is a mutual fund?
You know what a company's stock is. You've watched CNBC or Bloomberg and you know the stocks of Google,, Disney, and Coke.  They have symbols like GOOG, AMZN, DIS and KO, respectively.  You would use those symbols if you wanted to buy or sell THAT COMPANY'S INDIVIDUAL STOCK.

A mutual fund is simply a single representation (one ticker symbol representing the mutual fund) of a basket of stocks that the mutual fund manager has selected, hoping to grow the value of that basket of stocks.

The formal definition is:

A Mutual Fund is a professionally-managed type of collective investment vehicle that pools contributed money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.

Mutual funds have a fund manager that trades the pooled money on a regular basis. The net proceeds or losses are then typically distributed to the investors annually.

The increased (or decreased) value of individual stocks are then weighted within the fund, to determine the increased (or decreased) value of the mutual fund as a whole, which is reflected in its trading price daily.  (See example of CGM Focus Fund's - CGMFX quote - here... )

Many people like you invest their money in the mutual fund which then invests in various stocks and possibly other securities like bonds or cash or commodity instruments.

Each mutual fund has a "manager" or "investment advisor" who has the responsibility of directing the fund and deciding what and when to buy and sell securities that will maximize the value of the fund as it is reported quarterly.

Every three months, or quarterly, the mutual fund is required to report to the Securities and Exchange Commission (SEC) the list of the securities it currently holds and the amount of each security, in addition to an update of its investment objectives and other comments about its fund.

Many of these funds can be seen here:


NEXT:  Types of Mutual Funds...


Last updated: 

*Also owned for Jim Cramer's Charitable Trust Portfolio. Note that Jim trades frequently, so check the site for current portfolio here>>


Free Mad Money Recap
(Updated nightly with Jim Cramer's complete comments and stock recommendations - verbatim)
Jim Cramer's Charitable Trust Portfolio of Stocks
Bill & Melinda Gates Foundation Stock Portfolio



















Ken Heebner, Manager
CGM Focus Fund
Top-Performing Mutual Fund Manager

Related Financial Links

Action Alerts Plus - Jim Cramer
Get Jim Cramer's daily email alerts BEFORE he trades - Great service!...


Warren Buffett's Portfolio
(list of Warren Buffett's stock holdings)
Jim's Charitable Trust Stocks
(see latest stock holdings by Jim and what he's buying and selling for his Trust)
Free Stock Homework
(free stock research tool)
(list of all Dow 30 stocks)
(list of all Nasdaq 100 stocks)
Jim Cramer - Free Recap
(free nightly recap of Jim Cramer's Stock Recommendations)

Important disclaimer:
  This site is not associated with any mutual fund company, financial or investing institution or fund manager, or any of their business interests or websites, or any television broadcast company, or website entity.  Accuracy of this information is attempted, but is not guaranteed.  Do not use this site to make your financial investing decisions.  Consult a professional financial advisor.  This site simply reports information that is readily available as public information.

  Terms of Use  ●  Privacy Policy