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1. Cash management.

In cash management, pooling is a procedure in which excess funds in the bank accounts of a company or its subsidiaries are used to offset deficits in other company accounts for the purpose of determining interest earned or owed.

2. Fund management.

Pooling is the core principle of fund management, where individual investors with the same investment objective bring their moneys together in a single investment vehicle portfolio.

In exchange for the moneys brought in, the investor receives a proportional share in the mutual fund’s underlying assets.

See also