What are Investment Funds?Investment funds are firms that invest the pooled funds of retail investors for a fee. By aggregating the funds of a large number of small investors into a specific investments (in line with the objectives of the investors), an investment company gives individual investors access to a wider range of securities than the investors themselves would have been able to access. Also, individual investors are not hampered by high trading costs since the investment company is able to gain economies of scale in operations. There are two types of investment companies: open-end (mutual funds) and closed-end (investment trusts).Net Asset Value (NAV)The net asset value of an investment fund unit is the market value of the fund on a specified date, less liabilities and divided by the number of unit certificates issued. The net asset value is generally calculated and published on a daily bass (or in case of many alternative investment funds also on monthly basis).Real Estate Investment Funds Return from What are Investment Funds? to Homepage |
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