What are investment funds?

Investment funds provide investors with a professionally managed portfolio of investments that may help investors grow their money over time. They're often started when investors pool their money together to buy more kinds of investments than they could on their own.

What is the purpose of a fund?

The purpose of a fund is to set aside a certain amount of money for a specific need. An emergency fund is used by individuals and families to use in times of emergency. Investment funds are used by investors to pool capital and generate a return. College funds are usually set up by parents to contribute money to a child's future college education.

What is a mutual fund?

A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities. Mutual funds give small or individual investors access to diversified, professionally managed portfolios.

What is a fund company?

"Fund company" is a commonly used term to describe an investment company, which is a corporation or trust engaged in the business of investing the pooled capital of investors in financial securities. This is most often done either through a closed-end fund or an open-end fund (conventional mutual fund).