Safe:
Investment funds are protected against insolvency. The investment assets do not belong to the fund company but are held separately. If fund companies were to get into difficulty, the fund assets would not be affected. Moreover, investment funds and fund providers are subject to strict legal requirements.
Broadly spread:
Fund savers do not put all their eggs in one basket when building up their assets. Instead, they invest via only one investment product in many different securities, e.g. in shares or bonds of companies from different sectors or in real estate. This diversification is required by law and reduces the investment risk. Private investors would find it very hard to achieve such a broad diversification without funds.
Flexible:
Fund savers can invest a larger sum once or regularly pay into a fund savings plan. Fund savings plans are available from just a few Euros a month. Savers can access their money on a regular - mostly daily - basis. Open-ended real estate funds are an exception.
Transparent:
There is hardly any other financial product that provides savers with such comprehensive information as do investment funds. Even before buying, you can compare different funds using comprehensive product information. The providers publish current information on the funds, including performance, on their websites. The half-yearly financial reports of the fund companies contain further details.
