Set Up a Retail Fund in Germany

Set Up a Retail Fund in Germany

Updated on Thursday 02nd March 2017

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Those individuals or companies who want to have access to a balanced portfolio in Germany through a lower initial investment, may consider the option of retail funds. The retail funds principle is based on that of mutual funds in which several investors benefit of the concentration their money in larger sums, which allow more advantageous distribution of the investment.  Our attorneys in Germany gladly offer support for the set-up of a retail fund in Germany.

Advantages of retail funds in Germany

One important advantage of investing in a retail fund in Germany is a minimisation of the exposure to risks. The retail funds are not involved in trade actions which presume a greater degree of volatility. Thus retail funds operate more with those securities that do not shift over a large range of values. 
A retail fund is the best option an individual investor can choose for diversifying his investment in an easy way. For an individual investor, buying stocks form different industries and bonds with different maturities can be a rather costly undertaking. However this diversification of the portfolio becomes accessible to investors through the retail funds
Our law firm in Germany can inform you as well on those aspects of the German legislation that might concern you when you intend to diversify your investment through opening a retail fund in Germany.

Types of German retail funds 

According to the German legislation there are two main types of retail funds in this country: open-ended retail funds or closed-ended retail funds. The main difference between the two is whether the number of shares in the found is allowed to vary or not. The number of shares in a closed ended retail fund is fixed whereas in an open-ended retail fund this number is subject to daily variation.
The German fund industry is highly developed and manages yearly assets of more than 2.6 trillion EUR, being as well one of the core participants to the EU and global market. One element which contributes to the stability of the German fund industry is the high amount of contribution from the retirement savings.
We kindly invite you to rely on the legal services of our German lawyers and to contact us for valuable information and instructions regarding the investment in the German retail funds.