investment fund


Firm that invests the pooled funds of retail investors for a fee. 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 types of investment companies: open-end (mutual funds) and closed-end (investment trusts).
also called investment fund.

Use investment fund in a sentence

You should always do your research and make sure that you always pick the best investment fund you can find.

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ABC Company decide to use Fidelity to manage their employees investment fund with the goal being to produce an income for their pension plans.

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My brother shocked us all when he announced he was leaving his stock brokerage to form a new investment fund that would enable him to trade stocks for a living.

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Investment Management Regulatory Organisation collective trust