Comparative Study of Mutual Investment Funds and Other Collective Investment Tools

Abstract

Collective investment is a type of investment whereby the monetary resources of individual investors are pooled together and managed by a professional fund manager for the purpose of their subsequent profitable allocation. As a collective investment tool, mutual investment funds are a relatively new and attractive money investment scheme for Russian investors, including those who lack investing experience, because mutual funds are an affordable financial instrument. The article defines the main collective investment institutions. It is observed that mutual investment funds have a number of benefits, as well as drawbacks, as compared to other collective investment institutions. The article provides a definition of the investment institutions, a comparison of their main features, as well as a characteristic of investment tools of mutual investment funds, joint stock investment funds and private pension funds.