Saving holders can assess their savings by issuing securities from issuer companies, brokerage houses or securities exchanges. However, investing in securities requires knowledge and expertise. In addition, since individual savings generally do not reach sufficient size, the portfolios created by them are also risky portfolios. This risk may be the subject of capital or it may be a matter of bringing in the portfolio. For this reason, mutual funds and investment trusts, which are called collective investment institutions in the capital market, have been created.

A collective investment enterprise is called an investment fund when it is established as a separate and independent legal entity according to legal structures and an investment fund when it is established by another legal entity within a contractual framework.