Investment funds are pooled funds that an investment company manages on behalf of retail investors. By aggregating the funds of a large number of small investors into a specific investments (in line with the objectives of the investors), an investment company gives individual investors access to a wider range of securities than the investors themselves would have been able to access. Also, individual investors are not hampered by high trading costs since the investment company is able to gain economies of scale in operations. There are two main types of investment funds: open-end (mutual funds) and closed-end (investment trusts).
Related Links: - Port Funds
- The Fine Art Funds
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