Investment Funds Explained

An investment fund (sometimes called a mutual fund) brings together people who want to invest. When you invest in a mutual fund, you give your money to an association like an investment bank, who collects your money together with other investors' money in a pool. With this pool of money, securities such as shares and bonds are purchased.

Investment funds are great options if:

  • You don't want to spend much time on your investments
  • You need to diversify your investments to minimise risk
  • You want to invest in markets that private investors find difficult to access for example foreign markets

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