An investment fund is a pool of money collected from many investors that is used by the fund manager to purchase and sell 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, and there are now over 400 ETFs in Canada. Both offer a wider selection of investment opportunities and management expertise at a lower investment cost than most investors could access on their own.