Advantages Investor Protection Transparency Liquidity Diversification Professionalism

Advantages of Investment Funds

  1. Investor Protection

    Investment funds offer investors effective protection for their money because they are segregated pools of assets which, as a rule, are not affected if the fund management company goes bankrupt.

  2. Transparency

    Investment funds stand for transparency. Investors know how and where their money is invested, and they are clearly informed about the costs and fees. This builds lasting investor confidence.

  3. Liquidity

    There’s no waiting around when it comes to investing with funds. Putting money in and taking it out could hardly be easier, and fund issuers are also obliged by law to redeem units.

  4. Diversification

    With investment funds, investors don’t have to put all their eggs in one basket. The assets are spread across a wide range of securities (stocks and/or bonds and other investment instruments) and – depending on the investment focus – across different investment markets and currencies, too. This diversification reduces the overall risk of the investment.

  5. Professionalism

    By investing in a fund, you delegate the management of your assets to investment professionals. Funds are much more than just a way of “packaging” a random collection of individual securities. Fund managers constantly monitor and manage their portfolios in line with the investors’ interests.