The global fi nancial crisis of 2008–2009 and the crisis of the end of 2014–2015 had a negative impact on the state of the collective investment market, which became a constraining factor for its development. These problems of the formation and development of the market for collective investments in Russia, including mutual funds, dictate the need for theoretical research on these issues and their practical implementation. This determined the relevance and signifi cance of the chosen research topic. The concept of «collective investment» has not been suffi ciently researched in the works of Russian and foreign economists, it is not contained in the regulatory documents of the Russian Federation. That is why this topic is relevant: there are a large number of unexplored issues that need to be considered. The purpose of this research is to study and generalize the theoretical and practical aspects of the formation and development of mutual funds and ETFs as one of the most promising forms of collective investment. The main research methods used a systematic approach, statistical and economic analysis, and other general scientifi c methods. The article examines the aspects of collective investment in the international fi nancial market, as well as the mechanism of the collective investment market functioning. Moreover, a comparative description of mutual funds and ETFs are presented. In the course of research activities, directions for the development of mutual funds and ETFs were proposed as important elements of the collective investment system. The implementation of these proposals will increase the role of mutual funds and ETFs in the collective investment market in Russia and abroad, stabilize their reliability and attractiveness for investors.