Understanding Funds
Funds are financial assets in the form of money or other valuable resources that are collected and managed for a specific purpose. They are usually pooled together from various investors to achieve a common investment goal.
Types of Funds
- Mutual Funds
- Hedge Funds
- Exchange-Traded Funds (ETFs)
- Venture Capital Funds
Key Features of Funds
- Diversification
- Professional Management
- Liquidity
- Transparency
Case Study: Mutual Funds
For example, mutual funds pool money from multiple investors to invest in stocks, bonds, or other assets. This allows individual investors to access a diversified portfolio managed by professional fund managers.
Statistics on Funds
According to a report by Statista, the global mutual fund assets under management reached $47.5 trillion in 2020, highlighting the popularity of funds as an investment vehicle.
