What is a fund?

A fund is a pooled group of different investments covering a particular sector or geography. For example, a FTSE 100 passive fund is an investment that groups together stocks of all of the 100 biggest companies in the UK. This allows investors to have easy access to a slice of all these companies in one place!

In a typical Wealthsimple portfolio, you will invest in 10-12 different funds investing in different companies across the world globally through a mixture of equity and fixed interest funds. This means that in any Wealthsimple portfolio, you are actually investing in thousands of different companies across the globe. It is great to invest in many different companies as it means you aren't putting all of your eggs in one basket and so it will help to reduce the level of risk you are taking.