Monday, December 27, 2010

Fund

A fund is a form of collective investment where investors' money is pooled and invested in assets and securities relevant to the funds objectives and policies. Investors who invest money in the fund will receive units or shares. The fund is managed by a fund manager who is tasked with achieving optimal returns in the context of the fund's investment guidelines and policies [optimal returns because the best returns are still good returns even after adjusting for risk - see the performance analysis section].

Synonyms: Investment fund, Managed fund, Unit trust, Investment company, collective investment vehicle

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