For investors looking for a quick and relatively inexpensive way to diversify their portfolios, investment funds may be the key. Investment funds are a type of collective investment scheme that also go by the name of managed funds, mutual funds or funds. With investment funds, those who do not have large amounts of cash to invest directly into stocks and other securities can purchase “units” in a fund that is composed of a whole assortment of different assets. The investment fund is overseen by a fund manager whose only goal is to return a profit on the investment.
Like any type of investment, there are advantages and disadvantages associated with moving your financial resources into an investment fund.
It is imperative that consumers look for ways to diversify their investment portfolio as you should never put all your investments into one position.