How investment funds work

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Investment funds, whether local or international, rely on pooling capital from several investors, and then the collective capital is used to purchase securities, including stocks, bonds, and others, according to the nature of each fund, and the process of investing and achieving returns and profits begins.
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Since mutual funds do not limit their investments to one type of securities or one investment field, but rather invest in many different companies and fields at the same time, this provides a kind of diversification in the funds’ financial portfolios, which allows each investor the opportunity to choose... The type of investment that is appropriate for his financial goals, and the amount of risks that he has the ability to face and risk. The investor in investment funds participates in losses as well as in profits.
 
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