Pooled investment is a vehicle that allows you to put your funds into the same market alongside other investors. These funds are combined to benefit all parties equally through cost minimization. This investment option is usually considered the safest one simply because professional fund managers manage funds. Specifically, for new investors, pooled investments are the best way to step into the financial world.
There are many advantages of investing in pooled funds like lower transaction costs and greater diversification. Additionally, with the knowledge of experts in the field, the funds are allocated in the best areas where they can generate good returns. In 2025, there are types of pooled investments that every level of investor can consider.
Let’s dig deeper into the topic and explore the top types of pooled investments investors can consider in 2025, keep reading to uncover them.
5 Types of Pooled Investment You Can Choose in 2025
By carefully looking at different types of pooled investment options you can find out the best one that aligns with your financial goals. This article has handpicked some of the best options for 2025. From mutual funds to exchange-traded funds, hedge funds, real-estate investments, and closed-end funds. Scroll down to unveil the details about these investment areas.
Here are 5 types of pooled investments in 2025.
1. Mutual Funds
Mutual funds are a type of open-ended investment that includes bonds, stocks, mutual funds, and other investments. This type of fund means that the company that owns the fund can create new shares on demand to sell to investors. When an investor owns their share, then the fund can buy them back. This means when an investor buys a share in a mutual fund, they also get the part-ownership of all the underlying assets.
A mutual fund can be managed passively or actively. Passive funds track an index such as the Nasdaq or S&P 500 and attempt to match its performance. Actively managed funds mean the manager is actively making decisions about what investments to buy and what to sell within the fund.
2. Exchange-Traded Funds
An exchange-traded fund (ETF) has the characteristics of a stock and mutual fund. For the fund’s side, ETF has a collection of investments. This includes various things such as real estate, bonds, stocks, and commodities. What differentiates this from mutual funds is that ETFs trade throughout the day while mutual funds have their price set once per day.
Similarly, ETFs can also be managed passively and actively. However, when compared to mutual funds both active and passive ETFs have a lower expense ratio. Passively managed ETFs are more tax-efficient because fund holdings turn over less often.
3. Hedge-Funds
A hedge fund is a pooled investment vehicle that is managed by a money manager or a registered investment advisor. The fund manager is responsible for using all the investor’s funds to buy and sell investments for maximum profitability. However, this works by a set strategy by the fund manager.
For example, there are hedge funds that are funds of funds and there are others that invest exclusively in emerging markets. These funds can offer diversification because fund managers can pursue investment strategies that may not be an option in EFTs or mutual funds.
4. Real-estate Investment
Pooled real-estate investments are one of the most popular options in the investment world. This is simply because real estate continues to rise even in 2025. With the increased demand for housing societies and high prices of houses, people are demanding more rentable options to live in their preferred neighborhoods.
A pooled real-estate fund takes investments from a group of investors rather than a single investor. This is then turned into a pool which is then used to invest in larger investments that offer good returns. For this, investors are required to partner up with a professional fund manager. Considering this, you can refer to fund managers in Dubai to make the most out of your investment.
5. Close-End Funds
Close-ended funds work the opposite of open-ended funds. This is a type of fund where the number of shares available to investors is limited. These are usually associated with the initial public offering (IPO) when a company offers these shares of stocks to an open market for the first time.
This paves the path for startups to raise capital to fund their future growth. These closed-end funds can comparatively perform better than the open-end funds if the company is performing well. However, the downside of this pooled fund is that it can be more volatile.
Use Pooled Investments to Achieve Your Financial Goals
Pooled investments have lower risk and generate steady returns, which makes them great to expand your investment portfolio. You can refer to professional fund managers to strategically allocate your funds. Contact professionals now and leverage the expertise of knowledgeable fund managers to achieve your financial goals.
