Investing through an intermediary vehicle such as a fund, trust, or pooled structure instead of buying assets directly.
Indirect investment means investing through an intermediary vehicle such as a fund, trust, or pooled structure instead of buying the underlying assets directly.
It matters because many investors do not build portfolios security by security. They invest through wrappers that provide diversification, management, and easier market access.
Indirect investment commonly happens through:
Indirect investment changes the investor’s job. Instead of selecting each holding directly, the investor chooses the vehicle, the mandate, the cost structure, and the manager or index process behind it.