Investment Funds
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An investment fund is a way of investing money with other people to participate in a wider range of investments than may be feasible for an individual investor and to share the costs of doing so.
Terminology varies with country but collective investment schemes are often referred to as managed funds, mutual funds or simply funds. Around the world large markets have developed around collective investment and these account for a substantial portion of all trading on major stock exchanges.
Investment funds are promoted with a wide range of investment aims either targeting specific geographic regions (e.g. Emerging Europe) or specified themes (e.g. Technology). Depending on the country there is normally a bias towards the domestic market to reflect national self-interest, familiarity and the lack of currency risk. Funds are often selected on the basis of these specified investment aims, their past investment performance and other factors such as fees.
Ricky Schmidt
January 25, 2007
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