What is a fund and how do they work?
A fund is a collective investment, which is managed by a fund manager. They’ll pool your money with other investors and use it to invest in a range of assets like shares, bonds and more. The fund manager is responsible for the mix of investments, deciding what to buy and sell using the total amount of money.
This allows investors to diversify their investments without needing to buy each one individually. Think of it as a basket holding a variety of fruits – instead of buying apples, oranges and bananas separately, you get a mix, all in one go.
Types of funds
There are two main types of funds: active funds and tracker funds.
Why invest in a fund?
There are several key benefits to investing in a fund:
How to invest in funds
Whether you're looking to optimise your portfolio or explore new investment opportunities, funds can offer a versatile and effective way to achieve your goals.
The Select List is not intended to be a recommendation or advice. The value of investments and income from them can fall as well as rise. If you’re unsure about investing, seek financial advice. This advice may be charged for.
You can buy funds in your Share Dealing Account or ISA and pay zero commission if you use our Regular Investment service.
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