What is an investment fund?

The fund, investing in a mix of large-cap stocks, was launched in 1924. The majority of investment fund assets belong to open-end mutual funds. These funds issue new shares as investors add money to the pool and retire shares as investors redeem. These funds are typically priced just once at the end of the trading day.

How do investment funds work?

With investment funds, individual investors do not make decisions about how a fund's assets should be invested. They simply choose a fund based on its goals, risks, fees and other factors. A fund manager oversees the fund and decides which securities it should hold, in what quantities, and when the securities should be bought and sold.

What are the different types of investment funds?

Types of investment funds include mutual funds, exchange-traded funds (ETFs), money market funds, and hedge funds . With investment funds, individual investors do not make decisions about how a fund's assets should be invested. They simply choose a fund based on its goals, risks, fees and other factors.