What is a mutual fund? A government savings bond A collection of investments managed professionally A type pf checking account A short-term loan

## Step 1<br />A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, which is managed by an investment company. Each investor in the mutual fund owns shares, which represent a portion of the holdings of the fund.<br />## Step 2<br />The mutual fund is managed by a professional fund manager who makes the investment decisions on behalf of the fund's shareholders.<br />## Step 3<br />Given the options, the correct answer is "A collection of investments managed professionally". This is because a mutual fund is indeed a collection of investments managed professionally.