Funds: Profit from the prosWith investment funds you save yourself the search for promising securities and you spread the risk across a whole raft of instruments.
Four reasons for funds
- Profit from the know-how of the pro fund managers – they actively manage the portfolio.
- You spread the risk through diversification.
- Funds are special assets: In the case of the fund management company’s bankruptcy your invested capital is protected.
- At Börse Stuttgart you can trade a wide array of actively managed investment funds – at current market prices and with no sales charge.
Tops & Flops
Rely on the pros’ knowledge of the markets
The principle behind funds: You as an investor join forces with many others and bundle your capital. This is then carefully invested by the fund managers, depending on the fund type, for example, exclusively in equities, bonds, or mixed across various investment classes. And you can even invest in property – through open real estate funds that are very popular and can be traded through the exchanges.
Unlike ETPs funds are actively managed. Investment companies float the fund and appoint one or several officers to manage the fund assets. As investors you participate in line with your share in the fund’s performance.
Expertise, risk minimization and protection against bankruptcy
Funds have three key advantages: Firs, the investment experts actively work on the composition of the portfolio – within the terms of the defined investment universe. The pros decide which securities get bought and which sold. You the investor do not have to concern yourself with this. Second, you automatically spread your investment risk across different securities. This is less risky than investing in only a few securities. And third your capital is protected in the case of the fund company going bankrupt as it is treated as special assets.
At Börse Stuttgart you can choose from a broad range of actively managed investment funds: They are included in continuous trading from 8 a.m. to 10 p.m. at the current market price and without a sales charge frequently charged when acquiring them through a fund company.