An institutional unit that involves organized financial arrangements (pools) entailing the collection and combination of other financial intermediaries investor funds for the main purpose of acquiring and investing financial assets according to a pre-set scheme, both for the benefit of the investors and the managers, in terms of profits and other considerations.
Examples include mutual funds, investment trusts, unit trusts, and other collective investment units. However, investment pools exclude pension funds due to the differences in scope and purposes.
Investment pools, in specific countries, issue shares for investors (contributors), which can be tradable in the market, and hence are considered liquid and marketable. In other countries, these pools have a restricted exit flow which impacts its liquidity and turnover.
