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Investment funds pot investment to collect peoples savings and investment in securities through hand with expertise in the management of the portfolio and this is what individuals can not be achieved, it is a modern reasons for the management of funds, according to the wishes of investors and the needs of the service and the degree of acceptance of risk to achieve the benefits that can not be achieved alone, benefiting the bank or the company that set up investment funds and the savers and the national economy as a whole, and is a means to finance the operations of the national economy by linking national savings capital markets in order to achieve the protection of investors are specifically found to serve a certain class of investors, particularly young savers to find a way to diversify their investments are not available unless they have a significant financial portfolio.

Classifications investment funds:

Category I. According to the components of the investment in the Fund

There are two main types of investment funds are the direct investment funds, this fund is to invest directly in the establishment of new companies or buy stakes in existing companies or restructuring losing company The second type is the investment fund is direct and does invest in the stock market the composition of investment portfolios of stocks and bonds according to the purpose of the activity, or both.

Category II. According to the policy subscription and redemption

Divided into two types

closed investment funds defined as a as investment certificates tradable on the stock market closed investment funds where they can buy or sell through trading on the stock exchange like any other financial paper.

They are open-ended mutual funds and investment certificates are sold directly to the investor and can not be a way to trade in the stock exchange and the investor can be waived by the response directly to the fund each time period determined by the Fund in the subscription bulletin source.

Advantages of investment funds:

1. Investment funds can manufacture in terms of its objectives of providing an opportunity for a wide range of investors to invest in these funds according to the investment objectives of each of them.

2. managed investment funds to reduce the risks faced by the investor through what you are doing to diversify the portfolio.

3. provide liquidity for investment funds where the investor can recover the value of the documents, which he bought from these funds at a time when he sees or at the end for the Fund.

4. Verify investment flexibility for the investor funds in the event where he can change its investment objective to convert its investments from a fund to another.

5. The investment funds are considered large base where a large number of investors gather and therefore can benefit from their expertise.