Connect With Us
Register
Login
Fund definition
A fund is a pool of capital gathered from multiple investors and put to work toward a shared objective. An investment fund uses that pooled money to buy assets such as shares, bonds, or money market instruments on the investors' behalf.
Investors buy units or shares in the fund, and a manager allocates the combined capital across its holdings. Returns, whether capital growth or income, are split among investors in proportion to how much each one holds. A fund may be actively managed, where a manager picks the holdings, or passively managed, where it tracks an index.
A fund is the broad category, and a mutual fund is one specific type within it. Other types include exchange-traded funds, hedge funds, pension funds, and endowment funds, each with its own structure, access rules, and cost. The word fund can also describe money set aside for a purpose, such as an emergency fund or a retirement fund, rather than a pooled investment vehicle.
Fund Example
You contribute USD 2,000 to an equity fund.
The fund combines your money with capital from other investors and buys shares in many companies.
If the fund's holdings rise in value, your units are worth more; if the holdings fall, your units lose value.
The information provided on this website is of a general nature only and does not constitute personal financial advice. Before acting on any information on this website, you should consider the suitability of the information in relation to your objectives, financial situation and needs. Investing in CFDs and FX Margin Contracts carries significant risks and is not suitable for all investors. You may lose more than your initial deposit. You do not own, or have, any interest in the underlying asset. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. It is important that you read and consider the disclosure document before you acquire any product listed on the website. The information and advertisements offered on this website are not intended for use by any person in any country or jurisdiction where such use would be contrary to local laws and regulations. The Products and Services offered on this website are not intended for residents of the United States, Malaysia and Thailand.
TMGM is authorized and regulated in various jurisdictions.
Trademax Australia Limited, trading as TMGM, is regulated by the Australian Securities and Investments Commission (ASIC), AFSL no. 436416 and is located at Level 28, One International Tower, 100 Barangaroo Avenue, 2000 Sydney, NSW Australia.
Email: support@tmgm.com.au
Trademax Global Limited, trading as TMGM, is authorized and regulated by the Vanuatu Financial Services Commission (VFSC), registration number 40356 and registered at 1276, Kumul Highway, Port Vila, Vanuatu, Republic of Vanuatu.
Email: support@tmgm.com
Trademax Global Markets (SE) Limited, trading as TMGM, is authorized and regulated by the Financial Services Authority (FSA) of Seychelles, with license number SD224. The company is registered at Office No 13, Providence Estate ABIS Centre, Mahe, Seychelles.
Email: support@tmgm.com
Trademax Global Markets (International) Pty Ltd, trading as TMGM, is authorized and regulated by the Financial Services Commission, Mauritius (FSC) with license no. GB22201012, and registered at 33, Edith Cavell Street C/o IQ EQ Fund Services (Mauritius) Ltd Port Louis, 11324 Mauritius.
Email: support@tmgm.com
Copyright © TMGM. All rights reserved