Pooled Funds

Categories: Investing

See: Pooling-of-interest. See: Family Office. See: Omnibus Account. See: Wrap Account.

When you pool your funds, you aggregate them. Like...everybody steps up to the edge of the empty swimming pool after drinking three Big Gulps and, um...contributes. Then that total pool of collected...funds...can be invested collectively.

Why would you pool funds this way? Well, it gives you more heft, volume discounts to services, better attention from the various players with whom you interact. The key friction point revolves around goals, time horizon, and abilities to take risk. If everyone's on the same page, then great. If not, then there are smaller ponds that individuals probably oughta make, and go it on their own.

Related or Semi-related Video

Finance: What is pooling: investment/int...3 Views

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Finance allah shmoop what is pooling Well it's aggregating no

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no aggregating yeah Throwing in cash together partnering pooling interests

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in an investment simply refers to two or more players

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getting together to invest their money in whatever form mutual

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funds are are pooled investment So our index funds hedge

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fund bond funds etfs reads mlps any uh pretty much

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and well every other investment vehicle that can scale to

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allow for two or twenty or two million investors to

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all come together and invest well Why would people want

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to do this scale or rather synergies of costs from

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scale Whether you have one investor or ten thousand you

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need to file papers and there are usually pretty much

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always lawyers involved and accountants and other wall street gum

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sucking gadflies and the marginal additional cost of servicing ten

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thousand pooled investors is only somewhat more than servicing won

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So in many cases pooling makes a lot of sense

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when investors interests are generally aligned and when they're not 00:01:07.229 --> [endTime] around there's trouble

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