Mutual Fund
A mutual fund pools money from thousands of investors and has a professional manager invest it, priced just once a day after markets close. It's the older cousin of the ETF — same diversification idea, but usually with higher fees and less flexibility. Still the backbone of many 401(k) plans.
Example: A mutual fund charging 1% a year quietly costs ten times more than a 0.1% index fund — every year, for decades.
Related
Educational content only — not financial advice.