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A group of stocksOwnership in a part of a company where your investment sees gains or losses based on that company's performance. or bondsA loan to a company or the government for a certain period of time in exchange for interest payments. whose performance is tracked together. For example, a well-known market indexA group of stocks or bonds whose performance is tracked together. For example, a well-known market index is the S&P 500 which consists of stocks from the 500 largest companies. is the S&P 500 which consists of stocks from the 500 largest companies.
A professionally managed pool of investments that allows you access to multiple investments inside of a single solution. Each shareholder participates in the gain or loss of the fund. Shares are issued and can be redeemed as needed.
Synonyms: mutual fund