What is a Mutual Fund, Pooled Fund or Open Ended Investment Trust?
A mutual fund is basically a type of investment vehicle that allows individual investors with a likeminded interest to pool their money and have the benefit of professional money management. The professional manager has the responsibility of selecting stocks, bonds or other investments that are consistent with the fund’s goal or objectives. As an example, investors participating in the Research Fund are doing so because they want to own a portfolio of stocks involved in the research industry. In reality, they are a part owner (along with the other fund investors) of a very large investment portfolio. The portfolio may be a collection of 50 companies worldwide that are involved in the research industry. To duplicate such a portfolio themselves, investors would need to commit a great deal of time and capital. But, with an investment of only $25,000 in the fund, the investor has the benefits of instant diversification and the knowledge that a professional advisor is managing the portfolio
