Investment Fund

What Is an Investment Fund

An investment fund is a supply of capital belonging to numerous investors used to collectively purchase securities while each investor retains ownership and control of his own shares. An investment fund provides a broader selection of investment opportunities, greater management expertise, and lower investment fees than investors might be able to obtain on their own. Types of investment funds include mutual funds, exchange-traded funds, money market funds, and hedge funds.

With investment funds, individual investors do not make decisions about how a fund’s assets should be invested. They simply choose a fund based on its goals, risk, fees and other factors.