Mutual Fund
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Key Takeaways
- A mutual fund pools capital from multiple investors to purchase a diversified portfolio of securities that is managed by a professional investment manager.
- REIT mutual funds provide investors with access to a professionally managed portfolio of rREITs.
- Unlike ETFs, mutual funds are typically priced once per day after the market closes and are purchased directly through a fund company or brokerage platform.
What is a Mutual Fund?
A mutual fund is a pooled investment vehicle that collects money from multiple investors and invests it in a portfolio of securities—such as stocks, bonds, or REITs—managed by a professional portfolio manager. Investors own shares of the fund rather than the underlying securities directly.
How do mutual funds relate to REITs?
REIT mutual funds invest primarily in publicly traded REITs, giving shareholders diversified exposure to income-producing real estate across property sectors such as industrial, residential, retail, and office. These funds may provide investors with dividend income and professional management while offering diversification across multiple REITs within a single investment.