Investment fund

An investment fund is a pool of various securities (or other assets). It allows people to invest in a broad variety of assets without having to buy these assets individually. A distributing fund, also known as income fund, is a fund that pays out the income it earns to the investors on a regular basis. A non-distributing fund, also known as accumulation fund, is a fund that accumulates returns and invests them to increase the fund’s value and generate compound interest.