Stock Mutual Fund
A stock mutual fund is an investment fund that pools money from many investors to purchase stocks. It is operated by a professional money manager, who invests the fund’s capital and attempts to produce capital gains and income for the fund’s investors. A stock mutual fund is also known as an equity mutual fund. It is one of the most popular types of mutual funds, as it offers investors the potential for capital appreciation and income.
History of Stock Mutual Funds
The first stock mutual fund was created in 1924 by Massachusetts Investors Trust. This fund was the first to offer investors the opportunity to diversify their investments across a variety of stocks. Since then, stock mutual funds have become increasingly popular, as they offer investors the ability to diversify their investments across a variety of stocks without having to purchase each stock individually. Stock mutual funds are now offered by a variety of financial institutions, including banks, brokerage firms, and mutual fund companies.
Comparison of Stock Mutual Funds
| Fund Type | Minimum Investment | Fees |
|---|---|---|
| Stock Mutual Fund | $500 | 0.5%-2.5% |
| Index Fund | $1,000 | 0.2%-0.5% |
| Exchange Traded Fund (ETF) | $100 | 0.1%-0.5% |
Summary
Stock mutual funds are a popular type of mutual fund that pools money from many investors to purchase stocks. They offer investors the potential for capital appreciation and income, and are managed by a professional money manager. For more information about stock mutual funds, investors can visit websites such as Investopedia, The Balance, and Morningstar.
See Also
- Mutual Fund
- Index Fund
- Exchange Traded Fund (ETF)
- Money Market Fund
- Bond Fund
- Balanced Fund
- Asset Allocation Fund
- Target Date Fund
- Real Estate Investment Trust (REIT)
- Hedge Fund
