Mutual funds are financial instruments designed for collective investment in securities traded on stock exchanges in Israel and abroad.

There are various types of mutual funds, categorized based on their investment strategy and level of exposure to equities and foreign currencies. Each fund is reflected in the client’s securities account held at their bank or a licensed brokerage. Fund units can be bought or redeemed daily on trading days, usually without transaction fees.

In Israel, mutual funds are regulated by the Israel Securities Authority and operate under a trust agreement between the fund manager and the trustee. Investor returns are calculated net of management fees, operational expenses, and trustee fees.

Derech Invest serves as an external investment manager for a variety of mutual funds with different performance profiles. Anyone can invest easily in these funds through their bank’s investment advisor or via various trading platforms.