An investment fund is a pool of money, collected from many individual investors, that is used by a fund manager to invest in stocks, bonds or other securities in keeping with the fund’s investment objectives.
The most common type of investment fund is a mutual fund. In Canada, there are about 3,300 mutual funds designed for small, medium and large investors.
In recent years, exchange traded funds (ETFs) have risen in popularity. There are now over 400 ETFs in Canada. An ETF is an investment fund that trades on an exchange like a stock.
Mutual funds and ETFS both offer access to investment opportunities, diversification and professional investment management at a lower cost than most investors could access on their own.
