Part 2/8:
To begin, let's clarify what an investment fund is. Imagine planning a birthday party with friends. Instead of burdening one person to handle all expenses, everyone contributes a small amount to pool resources for food, drinks, and decorations. This shared approach is analogous to an investment fund where multiple investors combine their capital to invest in a diversified portfolio of assets like stocks, bonds, or real estate, managed collectively. By doing so, individual investors benefit from professional management without the stress of overseeing daily trading activities.