Mutual Funds

A pool of money raised from investors and invested in assets according to pre-determined objectives set in the mutual fund’s prospectus.  These funds are regulated by the Securities and Exchange Commission and are managed by the an investment company that hires portfolio managers who control the trades that the fund makes.  These funds are similar to hedge funds, but tend to cater to people with less capital to invest.  Mutual funds tend to charge lower management fees than hedge funds, and do not charge performance fees.