How does investing in funds work?
Investing in a fund effectively means that you pool together your money with a number of investors.
A professional fund manager or multiple managers who look after the fund will invest in asset classes on behalf of you and other like-minded investors.
Depending on the fund, it will also invest in various regions and sectors. Assets the fund may invest in range from cash to government bonds and equities to property depending on the specific investment objectives of the fund. The funds can also offer access to shares listed on foreign stock markets which may not usually be accessible to individual investors.
Some funds may invest across multiple asset classes (and the manager can sometimes invest with other specialist managers).