A mutual fund is a type of investment that pools money from multiple investors to purchase securities such as stocks, bonds, and other assets. A blue chip stock refers to a large, well-established company with a strong financial record. A mutual fund that invests in these types of stocks is typically known as a growth fund, as it aims to generate long-term capital appreciation for its investors. This strategy can be beneficial for those seeking to diversify their portfolio and potentially achieve higher returns.
