Investing in individual companies carries more risk and requires more knowledge to make the right choices, to monitor your investments, and make changes as necessary. For these reasons, adopting a collective approach can be extremely beneficial when entering the world of investing. Mutual, pooled, or collective funds are offered by investment management companies and provide easy access to a range of asset classes. When you invest in a collective, your money is added to that of many other investors which professional fund managers then invest in a range of different assets e.g. equities, bonds, property etc. Because your money is pooled with other investors, it means that even if you only have a small amount to invest, you can access a range of investments that otherwise you might not be able to.