What are the Different Types of Investment Funds?
In accordance with the law of Investment Funds, there exist three types of investment funds: a) Investment Funds that invest in Debt Instruments (also known as Fixed Funds) These investment funds are only able to invest in debt instruments and whose profits and losses are assigned daily amongst the shareholders. The first of these funds started operating at the end of 1983, and basically they were money market funds, offering investors high levels of liquidity and return, with the funds investing in money market instruments. Potential investors in this type of fund are the following: Companies and private clients, both Mexican and Foreigners. Credit institutions, Trusts, Federal and State Entities, Municipalities, Savings and pension funds, Insurance and Finances Institutions. Some of the characteristics are: Are low risk investment vehicles, with attractive returns with good levels of liquidity. They attract additional resources for the financing of money market and capital market ins
Investment funds, also known as collective investment schemes or managed funds, are group funds of money where people pool their assets together to allow them to access investment opportunities that otherwise would not be available to them. Since many investments have minimum buy-ins, often a single buyer at the consumer level would be unable to purchase even the minimum amount, but by pooling funds together with many other investors, the money can be invested and the profits or losses shared among the group. Since investments may have costs associated with them, as well, investment funds allow these costs to be reduced by being spread out over many people, rather than borne by each individual. There are two main types of investment funds in the United States: mutual funds and exchange-traded funds (ETFs). Mutual funds are the backbone of the collective investment scheme in both the United States and Canada, although the term is more generally in other parts of the world to simply refe
