Mutual Funds
The older pooled-investment structure: priced once daily, often actively managed, usually costlier.
What You're BuyingBeginner 3 min read· Lesson 5 of 13 in Investing Fundamentals
Structure
A mutual fund pools investor money under a manager. You buy/sell at the day's closing net asset value (NAV) — no intraday trading. Active funds charge ~0.5–1.5% yearly; that drag compounds against you exactly like returns compound for you.
Mutual fund vs ETF
Same idea (a basket), different wrapper. ETFs trade intraday, tend to be cheaper and more tax-efficient; mutual funds still dominate retirement plans. The important variable is almost always the FEE, not the wrapper.