Collective investment schemes, also known as investment funds or mutual funds, are utilized by investors as a means of pooling their assets in order to invest as a group and have these assets jointly managed. Such vehicles afford investors broad diversification with a smaller minimum investment. A single collective investment may be placed in equities, real estate, commodities and other asset classes. In contrast to investing in individual securities, investment funds and other collective investment vehicles afford greater diversification, reducing risk. Investors benefit from economies of scale as well through such vehicles, as investment management costs are shared, lowering costs for the individual investor entities involved. The invested assets are managed for the investors by a fund management company in accordance with a defined investment policy and strategy. Investment funds (or ‘funds’) offer a simple and cost-efficient way to invest in different asset classes.