Economics becomes a science · 1770s–1920s
1924
The first modern mutual fund
Massachusetts Investors Trust lets small savers buy into a managed portfolio.
Massachusetts Investors Trust opened in Boston in 1924. Anyone could buy in or cash out at the value of its holdings, giving small savers a share of a professionally chosen portfolio.
💡 Why it made sense then
Buying many different stocks cost more than most people could afford, and pooling money solved that.
Ideas it gave us
- 🧺 Mutual fund
A mutual fund pools money from many investors to buy a portfolio chosen by a manager. Shares are bought and sold once a day at the fund's net asset value.
Practise with $10,000 in play money
Free. No real money involved.