An entity that is established to invest on behalf of others. An investment entity obtains funds from investors for the purpose of investing their funds and providing them with investment management services. In other words, its business purpose is to invest funds solely for returns from capital appreciation, income, or both. Given its specific nature, an investment entity has to measure and evaluate the performance of a substantial part of its investments on a fair value basis (fair value through profit and loss/ FVTPL).

In addition to the above, an investment entity qualifies as such if it has investors that are not related parties of the entity and it has equity interests or similar types of interest in other entities.