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Roman law ignored the concept of juristic person, yet at the time the practice of private evergetism sometimes led to the creation of revenues-producing capital which may be interpreted as an early form of charitable institution.

This spreads risk, so if one company fails, it will be only a small part of the whole fund's investment.

Funds are useful because they will hold a broad portfolio of investments in many companies. The fund will buy shares in a company, or some other financial product. The employer gives that person's pension contributions to a fund. For instance, an ordinary person will have a pension from his employer. Their role in the economy is to act as highly specialized investors on behalf of others. Types of typical investors include banks, insurance companies, retirement or pension funds, hedge funds, investment advisors and mutual funds. They can also include operating companies which decide to invest their profits to some degree in these types of assets. Institutional investors are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets.