IS A MUTUAL FUND?
most 401(k) plans and other defined contribution plans have participant-directed
investments from a menu of mutual funds. For some, this is an opportunity to exercise
control over their retirement investments. For others, this is a daunting task
with lots of uncertainty.
mutual fund is a publicly traded investment vehicle that owns a group of individual
stocks or bonds. In some cases, a fund will own both. Mutual funds may also hold
cash or cash equivalents. Investors purchase shares in a fund that represent ownership
in the fund's holdings. You pool your money together with other investors, and
then the fund takes that money and invests it for you.