Investment Fund

AAA

DEFINITION of 'Investment Fund'

A supply of capital belonging to numerous investors that is used to collectively purchase securities while each investor retains ownership and control of his or her 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.

INVESTOPEDIA EXPLAINS 'Investment Fund'

Individual investors do not make decisions about how a fund's assets should be invested. They simply choose which fund to invest in based on its goals, risk, fees and other factors. A fund manager actually oversees the fund and decides which securities it should hold, in what quantities and when they should be bought and sold. An investment fund can be broad-based, such as an index fund that tracks the S&P 500, or it can be tightly focused, such as an ETF that invests only in small technology stocks.

RELATED TERMS
  1. Strategic Investment Fund

    The Strategic Investment Fund is a government-owned sovereign ...
  2. Exchange-Traded Fund - ETF

    A security that tracks an index, a commodity or a basket of assets ...
  3. Collective Investment Fund

    A fund that is operated by a trust company or a bank and handles ...
  4. Hedge Fund

    An aggressively managed portfolio of investments that uses advanced ...
  5. Index Fund

    A type of mutual fund with a portfolio constructed to match or ...
  6. Fund Manager

    The person(s) resposible for implementing a fund's investing ...
Related Articles
  1. 4 Strategies For Managing A Portfolio ...
    Mutual Funds & ETFs

    4 Strategies For Managing A Portfolio ...

  2. 5 Ways To Measure Mutual Fund Risk
    Mutual Funds & ETFs

    5 Ways To Measure Mutual Fund Risk

  3. Should You Follow Your Fund Manager?
    Mutual Funds & ETFs

    Should You Follow Your Fund Manager?

  4. Why It Pays To Be A Lazy Investor
    Retirement

    Why It Pays To Be A Lazy Investor

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center