Mutual Fund
InvestingA professionally managed investment fund that pools money from many investors to buy a diversified portfolio of securities.
Example
Example: You invest $10,000 in the Vanguard 500 Index Fund (VFIAX, 0.04% expense ratio). This single purchase gives you proportional ownership in all 500 S&P 500 companies. The minimum investment is $3,000. Alternatively, the ETF version (VOO) has no minimum and can be bought as fractional shares from $1.