What kind of mutual funds are there

What types of funds are there?

Equity funds


Equity funds invest primarily in stocks, i.e. in shares in listed companies. Stocks are real assets that can also protect against inflation. Anyone who purchases fund shares becomes co-owner of the various companies in which the fund invests. While some funds spread the stocks around the world, others are more specific and focus, for example, on certain topics, industries or countries. They generate their income through share price increases and dividends. Over longer periods of time, equity funds are among the most profitable types of funds; however, the fluctuations in value are also comparatively high.

Pension funds


Pension funds contain interest-bearing securities such as mortgage bonds, government bonds or corporate bonds. You set different priorities according to region, exhibitor, currency or duration. The most important income components are interest and price gains.

Mixed funds


Mixed funds combine different investments, for example stocks and bonds or money market papers. This enables them to react flexibly to different market situations. Depending on whether the mixed fund focuses on security or opportunities, it contains more bonds or more stocks.

Open real estate funds


Open-ended real estate funds usually invest in commercial properties such as office buildings, shopping centers, logistics and hotel buildings in Germany or abroad. Some funds have a focus on specific countries or regions, some also specialize in residential buildings. The value development depends on how high the rental income is and how the value of the building develops. Special holding periods and return rules apply to open-ended real estate funds.

Exchange Traded Funds (ETFs) / index funds


With ETFs, no fund manager selects the investments, but rather they replicate an index, such as the DAX, TecDAX or the MSCI World. Their performance therefore corresponds almost exactly to that of the index shown. There are different methods of replication: most funds buy the securities contained in the index (physical or replicating replication). Some artificially map the development of the index, e.g. B. through the contractual "swap" of the performance and income of securities (synthetic replication). Investors can buy many ETFs on the stock exchange and trade on a daily basis.

Common questions about ETFs

Money market funds


As the name suggests, these funds invest in the money market - in fixed-term deposits, fixed-income securities or bank balances; also in certain bonds with high quality, short maturities and an interest rate fixation of a maximum of 13 months. The returns generally correspond to the current market interest rates in trade between banks.

Positions

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The fund economy

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Members

In terms of assets under management, the member companies of the BVI together cover over 95 percent of the German market.

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