What is an investment fund?

By purchasing units in an investment fund (also called mutual fund or unit trust), you will invest in a diversified portfolio which is co-owned by private investors or institutions.

The fund is managed by highly professional investment specialists who distribute the fund's assets in several different targets, bonds or listed shares e.g. Already a relatively small amount of money can open up the opportunities of a 'large' investor. The most important fact is that your assets will be distributed between different targets and thus the value of your investment will not depend on the performance of any single security.

Fluctuations in prices or interest rates can influence the value of bond or equity investments. If share prices fall, the value of the investment tends to decrease. However, when buying additional fund units at this moment, you can get more of them for the same amount of money. Due to the increase in share prices, the value of your investment grows.

The past performance of the equities or bonds does not necessarily provide any guarantee of future results. Depending on the market situation the value of the investment may rise or fall in the future as well.