Mutual Funds

Mutual funds are financial instruments with collective participation, i.e. in which the capital provided by several savers is used and invested as if it were a single asset. The amount of money made available by each individual investor is called a mutual fund share or participation share.

Mutual funds are usually managed by an intermediary, i.e. a figure who puts the investor in contact with the financial market, also referred to as an ‘asset management company‘. To open an investment fund, it is therefore necessary to turn to dedicated financial intermediaries, generally represented by bank or private advisors, bank branches and online platforms. Once the most suitable asset management company for your needs has been identified, a fee, called an entry or management fee, will need to be paid to access the mutual fund.

Compared to other financial products, mutual funds fall into several asset classes, as capital can be invested in several different instruments.
This characteristic is essential to diversify your investment portfolio in order to try to amortise risk.

Depending on their knowledge and objectives, each investor must consider the type of mutual fund best suited to their needs. A first distinction can be made by analysing the financial instrument in which you invest.

In equity funds, for example, the collective capital is invested in shares. It should be remembered that, compared to other types of investments, the equity market exposes the shares more to market trends, increasing the possible risk.

Bond funds, as the name might suggest, invest units in bonds.

If you want to further diversify your portfolio, not limiting yourself to investing exclusively in stocks or bonds, you can also consider balanced funds. They are forms of investment that allow you to invest your capital in both bonds and stocks. The percentage of units dedicated to shares and that on bonds varies from fund to fund.

In addition to the financial instruments invested in, mutual funds can also be categorised on the basis of their objectives and time horizon.

Contrary to what you might expect, mutual funds are not necessarily long-term financial instruments. There are some types of funds, such as money funds, in which capital is invested in short-term investments with the aim of preserving the value of money, acting as de facto substitutes for the classic bank deposit.

For more experienced and risk-oriented investors, there is a non-traditional, speculative type of mutual fund, i.e. one that is based on making money based on the difference in prices at certain times in the market. These funds are called hedge funds, or speculative funds, and have absolute return as their main objective, an investment strategy that aims to generate profit regardless of market trends. 

Correlated words


Indicator that calculates the difference between the maximum and minimum price of an asset over a specific time period.

Floor price

The minimum price at which an asset can be purchased.

Bitcoin Dominance´┐╝

The percentage ratio between Bitcoin's market cap and that of the entire crypto market.


Two currencies traded against each other on a crypto or forex exchange

Price action

The behaviour of the price of a financial instrument over time.

Relative Strength

A chart describing the performance of a pair of cryptocurrencies by comparing their price performance.


In a price chart, the breaking of a resistance or support leading to an increase in volatility and trading volumes.

Bull Run

Market phase characterised by a bullish trend, associated with positive investor sentiment.


A sudden and rapid rise in the price of an asset or market index, caused by increased demand from investors.


A market situation in which the observed price trend is different from that predicted by an investor, falsifying their expectations.

Market Mover

A factor capable of influencing the development of a market and the level of prices.

Bear Trap

In a bullish market, a Bear Trap is a downward price movement that can confuse investors.

Bull Trap

In a bearish market, a bull trap is an upward price movement that, like a trap, can be deceptive.


In economics, volatility indicates the variation of the price of a financial instrument through time.

Supply and demand

In economics, supply and demand correspond to the two main market variables and describe the behaviour of those who buy and sell goods or services.


The amount of currency traded in a given period.

Market Trend

A perceived tendency of financial markets to move in a particular direction over time.


Trading is a speculative activity of buying and selling financial assets, with the goal of making a profit.

Stop Order

A trading order that allows you to set a price at which another order is triggered.


The difference between the execution price of an order and the price entered in the order.

Support and resistance

Support and resistance are two technical analysis tools used to monitor the price trend of an asset.


A value that measures the return generated by an investment.


A strategy that inflates the price of a cryptocurrency to generate profits only for those who implement it.

Prediction Market

Exchange-traded markets created for the purpose of trading the outcome of events.

Order Book

The list of all the prices at which traders are willing to trade a certain amount of cryptocurrency on an exchange.


A service that collects data not available on blockchain, verifies it and provides it to smart contracts


When the price of a cryptocurrency rises very fast, they say it soars 'to the moon'.

Market Order

Instant buy or sell at the next best price available on the market.

Market Maker

Companies or organised entities that, in partnership with an exchange, are always willing to buy and sell a cryptocurrency.

Market Cap

The total value of all the coins or tokens of a cryptocurrency in circulation.

Limit Order

A buy or sell order that is executed only when the cryptocurrency reaches the set price.

Futures Contract

A contract that regulates the execution of a transaction at a predetermined price on a specific date.


Fear, Uncertainty and Doubt refers to a negative market sentiment

Circulating Supply

The number of units of a cryptocurrency available on the market.


The Foreign Exchange Market allows fiat currency trading.


Fear Of Missing Out is an expression often used in the context of trading and cryptocurrencies.


ETFs are passively managed investment funds that replicate the value of a reference index called a benchmark.

Buy Wall and Sell Wall

High number of purchases or sales demanded at a certain price.

Bull Market

A market where there is an upward price trend

Break-Even point

The balance point between losses and gains, income and expenditure.

Bid and Ask

In the order book, these are the prices at which an asset is offered or demanded.


A standard for measuring the performance of a financial instrument or market.

Bear Market

A market phase characterised by price lows.


Acronyms used to indicate the maximum and minimum price of a cryptocurrency.

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