mutual-fund

Vocabulary Word

Definition

A 'Mutual Fund' is like a big basket full of different types of investments, like stocks and bonds. Many people pool their money together to buy this basket, so they can own a little piece of many different investments.

Examples in Different Contexts

In retirement planning, 'mutual funds' are often recommended as part of a diversified investment strategy. A retirement planner might explain, 'Including mutual funds in your retirement account can help balance risk and provide steady growth over time.'

Practice Scenarios

Leadership

Scenario:

We need to form a strategy for financial risk management. What options do we have to increase our financial stability?

Response:

Investing in mutual funds could be a good strategy. They offer diversification and are managed by professionals.

Academics

Scenario:

The topic for this week's discussion will be diversification of investment portfolios. Survey a variety of investment models and their potential returns.

Response:

I'll look into how mutual funds present a practical solution for portfolio diversification. Many models suggest good returns with them.