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Glossary

Real Estate Fund

A real estate fund is a collective investment scheme that pools the money of many investors and invests in real estate such as residential or commercial properties. Through fund units, investors can participate indirectly in the property market without buying real estate themselves. Returns arise mainly from rental income and any changes in the value of the properties. In Switzerland, real estate funds are governed by the Collective Investment Schemes Act (KAG, SR 951.31).

At a glance

01

A real estate fund pools investor money and invests in residential or commercial properties.

02

Investors participate indirectly in the property market without buying real estate themselves.

03

Returns come mainly from rental income; the value can fluctuate and is not guaranteed.

Frequently asked questions

With a real estate fund, you acquire fund units and thus participate indirectly in the property market without owning and managing a property yourself. The assets are spread across several properties, and listed fund units are often easier to trade than a single property. Direct purchase, by contrast, means full ownership but also full management effort and a concentration risk.
No. Returns come mainly from rental income and can fluctuate depending on occupancy and market conditions. The value of the fund units can also rise or fall. There is no guaranteed return.

Part of the topic

Anlegen & Investieren

Sources: Kollektivanlagengesetz (KAG, SR 951.31), Fedlex