what is investment fund

what is investment fund ?

An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group. These advantages include an ability to:

  • hire professional investment managers, which may potentially be able to offer better returns and more adequate risk management .
  • benefit from economies of scale, i.e., lower transaction costs .
  • increase the asset diversification to reduce some unsystematic risk.

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