A pool of money collected from many investors that is managed by a professional fund manager. The manager uses this money to buy a diversified mix of securities, such as stocks and bonds. Investors own a proportional share of the fund's holdings based on how much money they invested.
You and 9,999 other people each invest $1,000 in a mutual fund focused on technology stocks. The fund manager now has $10 million to invest across 50 different tech companies. Your $1,000 gives you ownership of a small piece of all 50 companies held in that fund.
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