MUTUAL FUND

Mutual funds are pools of money that are managed by an investment company. They offer investors a variety of goals, depending on the fund and its investment charter. Some funds, for example, seek to generate income on a regular basis . Others seek to preserve an investor's money. Still others seek to invest in companies that are growing at a rapid pace. Funds can impose a sales charge, or load , on investors when they buy or sell shares . Many funds these days are no load and impose no sales charge . Mutual funds are investment companies regulated by the Investment Company Act of 1940. Related: open-end fund , closed-end fund .