Joint funds (pooled funds)

The pooled funds are all those investment vehicles that arise from the grouping of different investors.

Joint funds are constituted when several investors raise their capital to invest. Instead of investing each one on their own, since they have common objectives they decide to group together to obtain better results.

In this article we will see both the objectives of the joint funds. That is, why they are born. And, we will also see the best known types of this type of funds.

Objectives of the joint funds

Manconumandos funds have as main objective to optimize the results. How? Taking advantage of economies of scale such that:

  • Reduce costs:Costs derived from operations in financial markets are divided among all investors
  • Maximize profitability:By having more capital available they have greater investment possibilities.
  • Minimize risk: Since they have more capital than individually, they can acquire a greater amount and variety of assets. That is, they further diversify their capital.
  • Attract more capital:The fact that they are a group, makes it easier for other investors to join the fund and enhance the above characteristics.

Types of joint funds

In reality these types of funds, according to their economic nature, have different forms. The most famous funds of this type are:

  • Traditional Investment Funds
  • Pension fund
  • Transferable investment funds (SICAV)
  • Real Estate Investment Fund (FII)
  • Quoted Funds (ETF)
  • Free investment fund or hedge fund (Hedge Fund)

In addition to these, which are the most famous, there are other less known types, such as art investment funds. Which are investment funds constituted for the sale of paintings, jewels, historical articles, etc.

In conclusion, there will be as many types of joint funds (pooled funds) as areas in which you can invest.

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