The money you pay into a pension is invested. Providers usually offer a number of different funds in which you can choose to invest. These can range from higher risk funds, investing in the UK or international stock markets, to lower risk funds, investing in cash deposits.
Mutual diversified fund whose shares are distributed proportionally to their contributions among several investors.
money that is invested with an expectation of profit
This is the general name for life funds used for savings and investment plans.
Centralised pools of money from a number of investors, either companies or individuals. This allows greater investments than what members of the group are capable of as individuals.
Investment funds are centralised pools of money that have a number of investors, either individuals or other companies. These funds rely on the pooling of resources to invest in higher value investments than the individuals involved in the fund would normally be able to invest in.
(also known as Mutual Funds.) An investment fund makes investments on behalf of the investors in that fund The money from the individual investors is pooled and invested in stocks, bonds, options and commodities or money market securities. The types of investments chosen are determined by the objective of the investment fund. These funds offer the investors the advantages of diversification and professional management. Large Cap. Stocks Shares with a large market capitalisation relative to the general market of which they form a part, e.g. General Electric in the US and Vodafone in the UK.
In Investment funds investors do not have a stake in a single asset but participate in the entire assets of the funds (indirect investment). Depending on the focus of the fund there are e.g. equity funds, bond funds, money market funds, property funds or mixed funds. The pooling of investors in investment funds provides the distribution of risks despite small amounts invested by the single investor.