What is an investment fund?
It is simply a body that collects savings from different investors having the same investment objectives. The money is pooled and then invested in various products available on financial markets, such as equities, bonds and currencies. According to your risk profile and your investment horizon, you can invest in different types of funds.
Money market funds
- funds composition: money market instruments in different currencies (fixed-term deposits, zero-coupon bonds, treasury bills or certificates of deposit, short-term bonds)
- Investment horizon: short term (two years on average)
- Risk/return ratio: limited risk, fairly similar returns to those of ordinary savings products
- Funds composition: fixed- or variable-income transferable securities in different currencies and covering one or more geographical regions (Europe, United States, emerging countries, etc.), such as government bonds, local authority debt or corporate bonds
- Investment horizon: medium term (two to five years on average)
- Risk/return ratio: moderate risk, more stable but often more limited returns than those of equity funds
- Funds composition: equities, options or futures. The equities funds are invested in various themes, geographic regions or business sectors: biotechnology, new energies, real estate, natural resources, etc.
- Investment horizon: medium to long term (at least two to three years)
- Risk/return ratio: potentially high risk and returns The fund managers follow rigorous investment policies (percentage invested in equities, types of liquid assets authorised) specified to investors in the prospectus, articles of association or management rules.
Global or mixed funds
- Fund composition: dynamic combination of different investment categories (money market instruments, bonds, equities, etc.)
- Investment horizon: The investment is adjusted to your investment horizon
- Risk/return ratio: each mixed fund is offered at different levels of risk