Definition
Mutual funds or security funds offer investors a broad spectrum of investment opportunities, depending on the precise investment approach and aims of the individual funds.
The money invested by many (mutually independent) investors is primarily invested in bonds, equities and other security instruments.
The funds are managed by capital investment companies. The value of the units of the various funds is recalculated on a daily basis.
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Benefits
Mutual funds were devised, among other things, for those investors who wanted to save time and reduce the risk involved in a security investment.
The most important benefits of investing in Austrian mutual funds are:
- Risk minimisation through broad diversification
- Professional fund management
- Small capital outlay
- No commitment to a fixed time period, liquidity at any time
- Lower fees than with direct investments
- Price gains from dividend distribution tax-free (private investors)
- Taxation at maturity in the case of bond funds (option grant required)
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