Mutual Funds in the Netherlands

Updated on Tuesday 27th June 2017

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A mutual fund in the Netherlands represents a type a vehicle with a long tradition on the local market. Investors interested in how to start a fund in the Netherlands can set up this type of vehicle, which is generally used for maximizing the return on investment. The investors pool their financial assets and invest in financial tools such as bonds and stocks and they are entitled to own shares within the respective fund

History of the Dutch mutual fund 

Foreign investors are strongly advised to set up their investment operations in the Netherlands through a mutual fund, as this type of fund is well rooted in the financial activities carried out in this country. Investors interested in how to set up an investment fund in the Netherlands should know that the vehicle was first used in this country in the late 1700s. 

The first mutual fund, named “Unity Creates Strength”, was incorporated with the purpose of gathering small investors to perform diversified investment strategies. The investors had the opportunity to hold their financial assets in other European countries. 

Types of mutual funds in the Netherlands 

At the moment, foreign businessmen may set up their financial operations in the Netherlands through numerous investment funds, including hedge fund startup. In the case of a mutual fund, the investors may choose from the following types of funds:

•    equity funds;
•    bond funds;
•    money market funds;
•    specialty funds
•    retail mutual funds.

One of the main advantages when setting up a mutual fund in the Netherlands refers to the types of strategies that investors may apply. For example, in a mutual fund investors may develop growth-oriented strategies, which have as a main purpose the accumulation of capital. Another way of investing in mutual fund is through income-oriented investment strategies, which are carried out in order to provide a stable income.

Investors interested in opening a fund in this jurisdiction should know that the Netherlands represents a top destination for the domiciliation of mutual funds, for matters concerning the taxation of the vehicles or the regulatory framework. Please contact our team of affiliates in the Netherlands for more details on the registration of a mutual fund