Investment Fund

is a form of collective investment within the strong state regulatory framework when the capital of participants (shareholders) is managed by a professional provider holding the license from the regulator. While investing into Investment Fund (IF) the shareholders become owners of shares of the fund’s assets, the composition of which is fully (for example, a particular infrastructure project) or to a certain extent (proportions of certain types of securities or financial instruments, categories of issuers) determined at the fund's formation. In addition to securities, financial instruments and infrastructure facilities, the fund's property may include commodity market assets (for example, precious metals), and in some jurisdictions - crypto assets. Depending on the degree of the share liquidity (i.e. the rules of redemption and selling/buying) and allowability of new shares issue and selling, Investment Funds differ in open-end, exchange-traded, interval and closed-end. In Russia there are some restrictions on involving so-called non-qualified investors into the IF with potential risky assets, so funds differ in this mark. In addition, funds differ in their key investment categories (equity, bonds, real estate, money market and currency, commodities, precious metals, cryptocurrencies), sector (corporate or government bonds, high yield bonds, certain industry equities etc.), the issuers’ geographic location. Investment Fund allow investors to diversify their portfolio and become co-owners of high-yield assets with limited prior resources. Some investment funds assume regular or irregular payments to shareholders, others reinvest free funds from dividends on securities, rental payments, etc.