Investment Funds in Germany

Germany is one of the most powerful economies of the European Union. Recently, the local authorities have announced that the investment market developed at a fast pace in the first quarter of 2016. Foreign investors are advised to set up their business operations in Germany under the form of an investment fund. Our team of German lawyers can offer assistance on the legislation regulating this industry and can also offer advice on what type of investment fund is more suitable for the businessman, in accordance with his or her interests. 

 

Retails funds are set up for individual investors who do not have a high net worth and who are not professional investors.  An important aspect of the retail fund market is that, throughout Europe, such funds represent a fifth of the total funds. 

 

Investors opening a retail fund can own shares and the contributions to which investors participate to are rather small. 

 

German legislation stipulates two main types of retail funds: 

 

• open-ended retail funds – the German market is very well developed in this sense and most of the funds in this category are established as undertakings for collective investments in transferable securities (UCITS);

• close-ended retail funds are rather undeveloped due to a lack of regulations, but the local framework is changing under the European directive referring to the Alternative Investment Fund Managers Directive. 

 

Our team of German attorneys can offer more details on the financial aspects referring to these types of funds. 

 

 

Another type of investment fund available in Germany is the mutual fund. A mutual fund is addressed to professional investors. Such funds refer to collective investment vehicles, which can be sold to the general public. 

 

In a mutual fund, the investor can buy and sell shares whenever he or she chooses to do so. The main instruments used by a mutual fund refer to the following: 

 

• shares;

• bonds;

• money;

• foreign exchange market instruments. 

 

Persons who are interested to receive more details on the investment funds in Germany can address to our German law firm for legal assistance.