Understanding How Pension Funds Work and How Your Share is Invested
Introduction
A pension fund is a financial vehicle that is used to accumulate funds and provide regular income to individuals after their retirement. These funds are managed by professional fund managers who invest the contributions received from the members in various financial instruments like stocks, bonds, mutual funds, real estate, and more. In this article, we will dive deeper into understanding how pension funds work and, more importantly, how your share is invested.
1. The Basics of Pension Funds
Pension funds are typically set up by employers for their employees or by governments for their citizens. The purpose of these funds is to create a pool of money that can be used to provide income in retirement.