Investment Funds

​Investment funds are known as investment vehicles made up of a pool of funds that gather the capitals of a group of investors and manage them according to a specific strategy and investment goals which are set by the fund’s manager to achieve investment benefits that cannot be achieved by an individual investor alone due to his/her limited resources. According to this, investment funds contain a group of financial securities that are chosen according to specific criteria in order to achieve the benefit of diversity that leads to decreasing the total investment risk level. Investment funds’ investments avoid the usual restrictions on individual investments. This would increase their ability to diversify and lower the costs of buying and selling shares. The profits of investment funds usually consist of capital profits, profits resulting from an improvement or change in the prices of the invested securities in addition to the dividends if any. The fund can face losses in case the value of the securities, which make up the fund’s assets, decreased.​