An Investment Fund includes a range of securities that are chosen based on specific standards that would achieve the Fund's objectives. In addition, it would also achieve the benefit of diversification for the investor which lowers the overall level of investment risk. Investment Funds avoid the restrictions on individual investments. This would give it more room to diversify and lower the costs of buying and selling stocks. Investment Funds' profits are usually from capital gains, i.e. the profits resulting from improvement or change in the invested securities' prices as well as the dividend distributions, if any. The Fund may exposed to losses if the value of the underlying assets of the fund decline.