An Investment Fund is a vehicle that allows a number of unrelated and unrelated investors or a group of individuals or companies to make investments together. The pooling of their capital allows them to share the costs and benefit from the benefits of investing larger amounts of money, including the potential for greater diversification across different assets and therefore risk diversification. There are a multitude of ways to establish and manage an investment fund, which generally depend on the needs of the fund’s investors.

The number of investors in a fund is not fixed. Investment funds may take different forms, for example as an investment company with investors as shareholders and a board of directors or as a contractual agreement between investors and the management company. They may have an indefinite life or be designed for a fixed period. They invest in traditional assets such as stocks and bonds and can also be made up of investments as exotic as wines, paintings or copyrights.

They can generate income for investors or seek to maximize the value of capital from their investments. They can be open for sale to any particular investor or be limited to sophisticated investors such as financial institutions and very wealthy families.

An investment fund is made up of sums pooled by investors. These amounts are then placed in different products, such as stocks, bonds, treasury bills, etc., managed by a fund manager. “The investment fund could be compared to a shell whose content is chosen, depending on the objective, the investor’s profile and his tolerance for risk”.

Investment funds (or mutual funds) are well suited to small investors who can thus benefit from the leverage generated by the pooling of investor sums. They also give them access to a range of investments that otherwise would be out of their reach. There are several types.

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