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Glossary

Investment Fund

An investment fund is a collective investment vehicle that pools the money of many investors and invests it in securities or other assets according to a defined strategy. Each investor holds fund units and shares proportionally in the fund's assets. The fund is managed by a fund management company, and the assets are held separately at a custodian bank. In Switzerland, collective investment schemes are governed by the Collective Investment Schemes Act (KAG, SR 951.31).

At a glance

01

An investment fund pools the capital of many investors and invests it according to a defined strategy.

02

The fund's assets are held separately at a custodian bank and managed by a fund management company.

03

Collective investment schemes in Switzerland are governed by the Collective Investment Schemes Act (KAG, SR 951.31).

Frequently asked questions

The fund's assets are held separately from the assets of the fund management company and the custodian bank and legally belong to the investors. In the event of the fund management company's bankruptcy, the fund's assets therefore do not, in principle, form part of its bankruptcy estate. This separation is a central protective mechanism of the Collective Investment Schemes Act.
In an actively managed fund, the fund management makes deliberate investment decisions to pursue a particular strategy. An index fund, by contrast, passively tracks an index. Active management usually involves higher costs, without that guaranteeing better performance.

Part of the topic

Anlegen & Investieren

Sources: Kollektivanlagengesetz (KAG, SR 951.31), Fedlex