Pooled Investments combine the funds of many investors.
A pooled investment allows you to invest in a large, professionally managed portfolio of assets with many other investors. As a result of this the risk is reduced due to the wider spread of investments in the portfolio.
There are different types of pooled investment but the main ones are:
– Open-ended investment funds
– Unit trusts
– Investment trusts
– Investment bonds
Most pooled investment funds are actively managed. The fund manager researches the market and buys and sells assets to try and provide a good return for investors.
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