Types of Investment Funds

Updated on Tuesday 11th July 2017

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Foreign businessmen can open a wide range of investment funds, addressed to various types of investors. Those who are interested in how to open an investment fund must know that the procedure can vary depending on the jurisdiction in which they are registered but, as a general rule, investments funds set up in the European Community will follow similar registration requirements. 
 


Mutual funds 


One of the ways in which investors may enter the investment market is through a mutual fund. Those who are interested on the procedure on how to start a fund registered as a mutual vehicle should know that they will need to appoint an investment manager, who will be entitled to manage the fund’s assets

A mutual fund can invest in stocks and bonds, but also in other similar financial assets. 

The video below offers more details on the types of investment funds that can be registered by foreign investors: 

 

Hedge funds   


Persons interested in hedge funds startups can register this type of vehicle in numerous countries, such as Netherlands, following the applicable legislation in the field. 

A hedge fund will receive authorization if it will be managed by an investment manager, who will perform investment strategies following the recommendations of the investors. The main purpose of a hedge fund is to provide the highest return on investment and, at the same time, to offer relevant strategies that will minimize the risk of the respective investment. 
 

Specialized investment funds 


The specialized investment fund (SIF) can be an attractive alternative for a wide range of investment fields, as they can be used for real estate investment projects, as well as for infrastructure and other similar industries. 

As a general rule, a SIF is addressed to the following types of investors interested in how to start a fund

•    well-informed investors;
•    professional investors;
•    institutional investors

Depending on the country in which the investment fund is opened, the initial capital requirement may differ.  Also, it is important to mention that a SIF allows its founders to establish any type of investment strategy that they may consider efficient. 

We invited businessmen to address to our affiliates for in-depth details on other types of investment funds that can be set up in one of the jurisdictions presented in our magazine, such as Luxembourg. When opening an investment fund, it is highly recommended to receive professional assistance from a financial specialist

Comments

Adrien

April 25, 2017

Hello! I am interested in the SIF structure. I know it is very popular in Europe.



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