According to fund tracker Morningstar: «A mutual fund is a
basket of stocks, bonds or other types
of assets that is professionally
managed by an investment company on behalf
of investors who don't have the time, know - how or resources to buy a diversified collection
of individual
securities (stocks, bonds etc.) on their own.
To cut down on the overall fees associated with
managing your account, Personal Capital uses
baskets of individual
securities and ETFs to create a model portfolio.