Funds

The word "fund" goes back to the French "fonds", meaning capital. There are countless funds, which are classified into different categories. Investors with a higher appetite for risk tend to put their money into equity funds, whereas more conservative investors tend to prefer bond funds and mixed funds, because these are less exposed to fluctuations in the overall market than shares.

Basically, a fund can be thought of as a kind of pot into which investors and savers pay their money, which is then managed by fund managers. In return, investors receive fund units whose value reflects the value of the fund's assets. Because the money is spread across many investments, a fund offers diversification even with relatively small amounts.

What are ETFs?

ETFs (exchange-traded funds) are funds that are traded directly on the stock exchange, in other words on the secondary market. Most ETFs track an index and replicate its performance, which makes them transparent. They are just as easy and efficient to trade as listed shares.

What are real estate funds?

Real estate funds invest their assets in properties, land or holdings in real estate businesses. There are two categories to distinguish: open-ended and closed-ended real estate funds.

Open-ended funds

Open-ended funds can take on an unlimited number of investors. The money flowing in from investors is invested according to the principle of risk diversification, mainly in commercial properties, buildings and projects.

Closed-ended funds

Closed-ended funds have a limited number of investors. They can invest in one or more projects. As soon as the targeted capital has been raised, the fund is considered closed.