[Glossary](https://pecuvo.eu/en/glossary/) · Investing # Investment fund **In short:** an investment fund pools the money of many people, and a manager invests it in many assets; each person holds units whose price changes with the value of the assets. **Simply put:** Instead of buying dozens of securities yourself, you buy a share of a common "pot". In the EU, funds open to a wide range of investors follow the UCITS framework (Directive 2009/65/EC): authorisation, a management company, a depositary, rules on investing and on disclosure. The framework does not remove risk. **Example:** You invest €1,000 in a fund whose unit is worth €10 and receive 100 units. If the unit value becomes €9, your holding is €900; if it becomes €11, it is €1,100. **Watch out:** "a fund means safe" is a myth. Risk can range from very low to very high — read the key information document and the fees. > **Example: Bulgaria** — funds and their management companies are supervised by the Financial Supervision Commission (FSC) — https://www.fsc.bg > > **Check in your country** — your national financial supervisor and its public register of authorised funds. **Source:** Directive 2009/65/EC (UCITS) — https://eur-lex.europa.eu/eli/dir/2009/65/oj ## In depth in the modules - [Module 24](https://pecuvo.eu/en/modules/investing-the-basics/) - [Module 12](https://pecuvo.eu/en/modules/insurance/) ## Related terms - [ETF (exchange-traded fund)](https://pecuvo.eu/en/glossary/etf/) - [Index fund](https://pecuvo.eu/en/glossary/index-fund/) - [Fund fees and costs](https://pecuvo.eu/en/glossary/fund-fees/) - [Key information document (KID)](https://pecuvo.eu/en/glossary/key-information-document/) - [Diversification](https://pecuvo.eu/en/glossary/diversification/) - [Unit-linked insurance](https://pecuvo.eu/en/glossary/unit-linked-insurance/) - [Financial Supervision Commission (FSC)](https://pecuvo.eu/en/glossary/fsc/)