Commingled Funds are basically a single account that includes the assets of many accounts. The primary objective of such type of fund is to lower the cost of managing the funds. https://efinancemanagement.com/investment-decisions/commingled-fund

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Commingled Fund

2. 1. Meaning
2. Example
3. Advantages
4. Disadvantages
5. Commingles Fund vs Mutual Fund
6. Reference
Content

3. Commingled Funds are basically a single account that includes the assets of many accounts. The primary objective of
such type of fund is to lower the cost of managing the funds. Workplace retirement fund is a good example of this type
of fund. We also call such funds as Pooled Funds.
Meaning

4. Assume investor X, Y and Z come to a fund manager A to manage their portfolio separately. A, however, tells them that
he would manage all their accounts as one account to reduce the expenses and his work. The money from all three will go
to one pool and the assets that A will buy from the money will be distributed equally among the three. And, on the
reporting date, the distribution of assets among the three will be on the basis of capital contribution.
Example

5. Following are the advantage of Commingled Funds:
• No need of managing multiple accounts for diverse assets.
• Cheaper to manage
• Fewer operational and regulatory requirements.
• Help to diversify one’s portfolio.
• Give a better return than mutual funds because of their lower expenses and focus investing.
Advantages

6. Following are the disadvantage of Commingled Funds:
• Less transparent and more risky.
• Not many investors have access to these funds.
• These funds’ lack liquidity and non-marketable nature.
• Hard to track such funds’ performance in real-time.
• Investors may not get information on the holdings, expense ratios and other details of such funds.
• Not widely available as other investment options.
Disadvantages

7. The most basic difference is in respect to regulation. Mutual Funds face heavy regulation from the SEC. Commingled
Funds, on the other hand, face fewer regulations and the SEC doesn’t regulate them.
Mutual Funds are relatively more expensive because of their higher operational expense. Since Commingled Funds have
fewer regulations, their expenses are lower.
Unlike the Mutual Funds, the Commingled Funds don’t have a ticker. This is because they don’t trade publicly.
Commingled Fund vs Mutual Funds

8. Reference
To know more about it, click on the link given below:
https://efinancemanagement.com/investment-decisions/commingled-fund