Entity in which investors pool their capital for joint investment. The assets are managed by the fund management company for the account of the investors based as a rule on the principle of risk distribution. Depending on the type of mutual fund, the assets may be invested in securities, money market instruments or in real estate; investments can also be made in special fund products and asset allocation funds. Swiss mutual funds must have a variable capital and are obliged to redeem units whenever requested. See also securities fund, money market fund, real estate fund, country-specific fund, regional fund, sector fund.