The mutual fund portfolio is a pool of investments created from the fund manager’s investment decisions, which are held in trust on behalf of the individual investors. Each fund has a defined investment objective that determines the overall management of the fund and the types of investments that can be held in it. When you invest in a mutual fund, you purchase units in the fund, where each unit represents a share of the fund’s value.

To learn more about investing in mutual funds, see:

• Types of Mutual Funds
• Benefits of Investing in Mutual Funds
• Costs of Mutual Fund Investing