Investment Funds

Undoubtedly the easiest way to invest in the stock market is via a pooled investment fund such as a unit trust or an OEIC (open-ended investment company).

With an investment fund, your money is combined with that of other investors to form one fund. This fund is allocated to a fund manager who buys a range of stocks and shares or corporate bonds.

The returns made are dependent on the performance of this range of stocks but the risks and the costs are greatly reduced in comparison to investing in these companies individually.

It is aim of the investment fund managers to maximise returns for their investors, and meet the investment fund’s overall objectives.

These type of investments are usually regarded as long-term and it’s important to remember that values will fluctuate, so instant gains are unlikely.