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Open a Mutual Fund in Germany

Open a Mutual Fund in Germany

Updated on Thursday 02nd March 2017

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Investing in a mutual fund in Germany means to contribute to a collective investment vehicle that concentrates money from several investors in order to purchase securities. If you intend to open a mutual fund in Germany our law firm in Germany can assist you with legal consultancy.

Overview of the mutual funds in Germany

 
The mutual funds in Germany issue units or equity shares in order to finance their operations. One important aspect of the mutual funds is the diversification of investment. This is why the mutual fund portfolios are structured in equity, bond and mixed securities-based funds. This allows as well investment in more than one industry a measure which minimizes risks and increases the potential profit of the investment.
 
One of the most important investor groups in mutual funds in Germany are the domestic non-banks and institutional investors. Another important segment is represented by the contribution to retirement plans.
 
Our German lawyers can offer further information and support regarding the set-up of a mutual fund in Germany and the legal framework for investment in this country.

Advantages of mutual funds in Germany

 
One important advantage of opening a mutual fund in Germany is a low risk exposure, through investment in securities whose value is not shifting too much. The low risk of mutual funds is also ensured by a series of restrictions on their operations. As such, the mutual funds are not allowed to buy securities on margin or to sell securities short.
 
Opening a mutual fund in Germany gives investors open access to a broad market. Through a small contribution you can invest in several different securities, with reduced transaction costs and benefiting from increased diversification.
 
Another important strong point of mutual funds investment is the degree of liquidity which allows you to enter or exit the market in relatively short time and with ease.
 
Our law firm in Germany can support you through complete legal assistance. Feel free to contact us when you decide to open a mutual fund in Germany.