This person's job is to control all of the investors' money and invest it into a group of stocks or bonds. He or she also decides how much to invest in each stock. A mutual fund has a price, like a stock. It tells you how much one share of that mutual fund costs. Mutual funds are great for people who don't want to take as much risk with their money.
Mutual funds are less risky because they buy a bunch of stocks.
If one stock does poorly, you won't lose as much money as you would if that was the only stock you owned. Mutual funds are also good for people who don't want to spend too much time investing. Portfolio managers handle their money and invest it for them. When you buy stock, you have to pay a commission. However, the fees involved with investing in a mutual fund are often much less in comparison.