Pooled investment vehicles allow multiple investors to invest capital into a collective fund, which is then managed by professional fund managers. There are various types of pooled investment schemes available, with key examples including mutual funds, hedge funds, private equity funds, real estate investment trusts (REITs) and exchange-traded funds (ETFs). This article will introduce some major examples of pool investment vehicles.
Mutual funds as pooled investments
Mutual funds pool money from many investors and invest that capital into stocks, bonds and other securities according to stated investment objectives…
Hedge funds for qualified investors
Hedge funds are actively managed alternative investments that are structured as private partnerships and often require high minimum investments or accredited investor status…
REITs for real estate exposure
A real estate investment trust (REIT) owns and manages income-generating real estate assets. Publicly traded REITs allow investors to gain exposure…
ETFs as low-cost index funds
Exchange-traded funds (ETFs) track indexes but trade on exchanges like stocks. ETFs provide diversified index exposure and have become popular…
In summary, pooled investment vehicles like mutual funds, hedge funds, REITs and ETFs allow individual investors to participate in professionally managed portfolio strategies.