Investment fund - Financial definition
Concise definition of the term investment fund
An investment fund is a pooled fund that gathers money from multiple investors to invest in various financial assets, managed by professionals.
Comprehensive definition of the term investment fund
Investment funds encompass a variety of structures, including mutual funds, exchange-traded funds (ETFs), and hedge funds, each with distinct investment strategies and regulatory frameworks. These funds provide individual investors with access to diversified portfolios managed by experienced professionals, allowing them to benefit from economies of scale and expertise they might not have on their own.
Investment funds can range from conservative options focusing on stable income generation, such as bond funds, to more aggressive strategies targeting capital appreciation, like equity funds. They play a crucial role in the financial markets by facilitating capital allocation, risk management, and wealth creation for investors across different risk appetites and investment objectives.