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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