Fund Basics

A guide to fund investing for beginners and those more experienced investors who need a re-cap 

Emma Wall 12 December, 2014 | 11:17
Facebook Twitter LinkedIn

A fund is an investment vehicle that allows a large number of people to pool their money together in order to invest in a range of different securities such as stocks and bonds.

When you buy shares in a fund, you're buying an ownership stake in a range of investments that are managed by a fund manager. The fund manager combines your money with that of other investors and uses the money to buy and sell investments, with the goal of increasing the value of the fund.

The investments held in a fund are called the fund's assets. The fund manager invests the fund's assets, typically by buying stocks, bonds, or a combination of the two. Some funds buy more complicated securities such as property and commodities and almost all funds have a ‘buffer’ of a cash allocation.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Member.

Register For Free
Facebook Twitter LinkedIn

About Author

Emma Wall  Emma Wall is Editor for Morningstar.co.uk

© Copyright 2021 Morningstar Asia Ltd. All rights reserved.

Terms of Use        Privacy Policy        Cookies