Funds
Compact knowledge at a glance
Investment funds are simple investments and offer the possibility to invest broadly in different asset classes. An investment in different topics, such as sustainability or megatrends, but also the step-by-step investment in the form of a fund savings plan are efficient ways to invest.
Investing in funds
In an investment fund, the money of many investors is collected. The fund company bundles these funds into a so-called investment fund. Financial experts, who are responsible for fund management, look for attractive investments and invest capital in different assets to spread the risk.
A fund consists of a portfolio of selected securities and/or tangible assets. These assets contained in the portfolio form the fund's assets. A fund is broadly diversified and invests, for example, in numerous companies and/or countries. The fund’s assets are managed by experts. Its assets constitute special assets, which means that in the event of bankruptcy of your bank or the bank entrusted with the custody of the securities (custodian bank), the fund assets will be segregated.
You invest in the fund’s assets by purchasing fund units. This makes you a co-owner. Dividing the value of the fund’s assets by the number of fund units gives you the fair value of one fund unit - known as the calculated value. This calculated value is determined and published regularly, usually on a daily basis. The number of fund shares issued is usually not limited, which is why the term "open-ended investment fund" is used. For investors, this means that they buy and sell fund shares at any time.
The fund manager invests the money of its investors in securities or real estate. To get an overview of the different types of funds, it is helpful to look at the so-called "asset classes". This refers to the different types of securities and/or tangible assets in which a fund invests. There are bond funds, equity funds, mixed funds, and real estate funds.
Product features at a glance
- Actively managed funds through professional fund management
- Investors can buy and sell fund units at any time. Buying funds is possible even with small amounts
- Investment funds offer broad risk diversification since the money of the investors is invested in different assets
- The fund assets are special assets, which remain available in the event of bankruptcy of the fund company or the custodian bank
- The assets contained in an investment fund may be subject to strong fluctuations.
- In the case of funds specializing in certain sectors or countries, there might also be sector- or country-specific risks
- There is a currency risk for the securities in investment funds that are quoted in their local currency
- Capital losses are possible