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These invest investors' capital primarily in commercially used real estate. The capital is used to build or buy office buildings, retail complexes or logistics centres. To ensure a good return with a high degree of security, the fund managers aim for a balanced diversification. Depending on the investment property, the fund is diversified in terms of size, type of use, tenant sectors and locations. However, not all of the capital flows into the open-ended real estate fund, but is held in liquid assets such as interest-bearing securities. This serves not only as a security aspect, but also to take advantage of favourable buying opportunities. Reserves must also be formed in order to carry out distributions or for the settlement of unit redemptions.

Mixed funds

In order for the values to develop positively within the term, such real estate investments should always be regarded as long-term investments. In this case, the increases in value of the property are tax-free and the investor receives corresponding shares from rental and interest income. In addition, this investment represents an extremely worthwhile addition for the private investor for personal asset structuring. Private investors also have the option of investing in different asset classes at the same time, such as equities, bonds or money market instruments. In this case, there are so-called mixed funds, which are available as both low-risk and higher-risk investments. The risk as well as the applicable minimum and maximum investment limits can always be found in the fund prospectus.

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Equity funds

The advantage for the private investor is that the investment not only provides him with a certain degree of security, but at the same time allows him to take advantage of opportunities on the stock market without having to worry about them himself. Therefore, the risk profile of mixed funds lies between that of an equity fund and that of a bond fund. Those who want to additionally rely on a broad diversification in mixed funds can invest in asset management products via exness mt4 download. These include, for example, commodities, currencies or real estate (also outside the Eurozone). On the other hand, those who do not dare to invest in the stock market alone invest in equity funds in order to eliminate the risk of an individual investment in shares. Due to the large number of shares in the pooled fund, the risk of companies listed on the stock exchange is significantly reduced.

Nevertheless, this investment should be approached with caution, because especially with short- or medium-term investments, the investor bears a significantly higher risk than investors in bond or mixed funds. If you have to sell at short notice, you have to take into account the possibility of a (heavy) loss. In addition, with equity funds, attention should also be paid to the respective investment focus, because this results not only in opportunities, but also in risks. If you only want to expose your investment to minor fluctuations, you should invest your money in a fund that is broadly diversified worldwide in large companies. On the other hand, if you want to benefit from strong fluctuations, you should concentrate on smaller companies, sectors or countries. The only important thing with all investments is a broad diversification in order to significantly reduce the investment risk.