Investing in Funds

5 min Read Published: 20 Oct 2014
Understanding the basics

Funds give the investor a simple and convenient way to invest and are popular with both novice and experienced investors alike. In this guide, we are using the term 'fund' as a general description to describe a unit trust/OEIC, investment trust or an ETF (exchange traded fund).

Investing in funds allows your money to be pooled with other investors and have these investments managed by a professional fund manager who will invest in a broad range of assets on your behalf.

Each fund will have an investment objective and this will dictate the asset classes the fund manager will select for the fund's investments. Investors in the fund will receive units or shares which represent a proportion of the underlying investment portfolio.

The main benefit of investing in funds is that the fund manager will make all the investment decisions for you based on the objective of the fund.

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