Why investment funds?
What are investment funds? What are the advantages and disadvantages, and what opportunities do they offer? We have compiled the most important information here.
What is an investment fund?
Investment funds are professionally managed investment instruments used for medium to long-term investments and asset accumulation. Fund investments are now a mainstay of asset accumulation among private individuals, companies and governments. They act as a complement to traditional savings accounts and direct investment in individual securities.
In investment funds, experienced investment experts take care of the management and ongoing monitoring of the invested assets in the interests of the investors. In a fund, the savings contributions of many investors are pooled and invested by the financial experts in a range of different securities, such as equities, bonds or debentures and real estate, or in the money market. Investments can thus be made inexpensively due to the significantly larger amount of assets being invested by the fund. For individual investors, this means lower transaction costs than would be the case with direct investment. This enables even investors with small investment amounts to access promising international financial markets via investment funds.
The assets are invested differently depending on the specific focus of the investment fund. The investment principles of each fund are published and made public in the key investor information document (KIID) and in the fund’s sales prospectus. The factsheet for each fund also contains very useful information.
All the information is available under the heading “Information” and in the sections on the relevant investment funds.