Also called open-end fund
Mutual fund
A pooled fund that issues and redeems shares continuously at net asset value, priced once a day after the close rather than traded live.
Updated 2026-09-05
A mutual fund pools money from many investors and buys a portfolio with it. Shares are issued and redeemed continuously by the fund itself, always at net asset value, priced once a day after the market closes.
That once-a-day pricing is the practical difference from an etf. An order placed at 11am executes at the closing price, not at the price when you placed it. For a long-term holder this is irrelevant; for anyone trading around news it is not.
See also
- ETF — A basket of securities that trades on an exchange like a single stock. Most track an index, charge very little, and can be bought and sold all day.
- Net asset value — What one share of a fund is actually worth, based on what the fund holds. A mutual fund always trades at it; a closed-end fund often does not.
- Closed-end fund — A fund with a fixed share count that trades on an exchange. Its price can sit above or below the value of what it holds, sometimes for years.
- Expense ratio — The annual percentage a fund charges. It comes out whether the fund gains or loses, and over decades it compounds against you exactly as returns compound for you.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
