INVESTING IN A FUND
A fund is an investment vehicle which pools the money of investors and invests it according to a defined set of investment objectives.
Investing in a managed fund can avoid some of the problems of buying shares direct. As well as removing the research required, funds can invest in a much wider variety of companies and assets than you would normally be able to. This is because the money contributed by all the investors in the fund are ‘pooled’ together to buy collectively and share dealing costs. This spreads the risk, reduces the possibility of large losses, and can increase the chances that your money will grow.