A pooled (or collective) investment is where many people put their money into a fund, which is then invested in one or more asset classes by a fund manager. Open-ended investment funds Most pooled investment funds are actively managed. The fund manager researches the market and buys and sells assets to try and provide a good return for investors.<\/p>\n Trackers, on the other hand, are passively managed, they simply aim to track the market in which they are invested. For example, a FTSE100 tracker would aim to replicate the movement of the FTSE100 (the index of the largest 100 UK companies).<\/p>\n They might do this by buying the equivalent proportion of all the shares in the index.<\/p>\n For technical reasons the return is rarely identical to the index, in particular because charges need to be deducted.<\/p>\n Trackers tend to have lower charges than actively-managed funds. This is because a fund manager running an actively-managed fund is paid to invest so as to do better than the index (beat the market) or to generate a steadier return for investors than tracking the index would achieve. Of course the fund manager could make the wrong decisions and under-perform the market. And there is no guarantee that an actively-managed fund that performs well in one year will continue to do so. Past performance is no guarantee of future returns.<\/p>\n Trackers do not beat or under-perform the market (except as already noted), but they are not necessarily less risky than actively-managed funds invested in the same asset class. Open-ended investment funds and investment trusts can both be trackers.<\/p>\n","protected":false},"excerpt":{"rendered":" Investing in one or more asset classes A pooled (or collective) investment is where many people put their money into a fund, which is then invested in one or more asset classes by a fund manager.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4,1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/645"}],"collection":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=645"}],"version-history":[{"count":0,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/645\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nThere are different types of pooled investment but the main ones are: <\/strong><\/p>\n
\nUnit trusts
\nInvestment trusts
\nInvestment bonds
\nEndowments<\/p>\n