What is a pooled investment vehicle?


Quick Answer

A pooled investment vehicle, also known as a pooled fund, is an investment fund that uses funds from numerous individual investors. The funds are then combined into a single investment fund, similar to a pension or mutual fund.

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Full Answer

Investors who join a pooled investment vehicle typically enjoy the economies of scale a larger fund value creates. Investments made using a pooled investment vehicle are generally charged less in trading costs per dollar and offer professional management and diversification. However, the gains made from a pooled investment vehicle are evenly divided between all investors, making it sometimes disadvantageous for new investors in the fund.

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