Funds are pools of money collected for a specific purpose, often used for investment or to support various projects. They can be managed by individuals, organizations, or financial institutions. Common types of funds include mutual funds, hedge funds, and pension funds, each serving different investment strategies and goals. Investors contribute to funds to gain access to a diversified portfolio, which can reduce risk compared to investing in individual assets. Funds are typically managed by professionals who make decisions on behalf of the investors, aiming to achieve the best possible returns while adhering to the fund's objectives.