Understanding How Pension Funds Work and How Your Share is Invested



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.

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