What is a fund?
Investment funds offer easy access to the financial markets. As provision for retirement, as investment in bond markets with higher yields, or as riskier investment in equity markets – funds are an economical and efficient way of implementing your investment of choice.
What You Should Also Know About Funds
Questions and answers on the topic of investment funds.
Your question isn’t listed? We’ll be happy to provide more information. Please note the opportunities and risks involved.
When you invest in individual company stocks, you should always monitor and actively manage your securities portfolio. Many investors find the necessary research too complicated and time-consuming.
With an equity fund, you invest in many different stocks. Professionals select these stocks for you. This broad diversification helps you avoid the risk associated with individual securities.
Bond funds invest their money primarily or exclusively in bonds. Bonds are securities with fixed or variable interest rates, issued by governments, multinational organizations, or companies. A distinction is made between bonds from industrialized nations and those from emerging markets. Bonds are characterized by having a specific term and paying interest. This interest is called a coupon.
Mixed funds can invest in stocks, bonds, commodities, and shares of other investment funds. They combine the growth potential of equities with the income from fixed-income securities.
A fund savings plan is a method of regularly investing in investment funds. Investors contribute a fixed amount to a fund at regular intervals (e.g., monthly or quarterly). This strategy takes advantage of the cost-averaging effect: when prices are low, investors buy more shares; when prices are high, they buy fewer. This can help smooth out the impact of market fluctuations.
Please note: The cost-averaging effect decreases over the duration of the savings plan, as the accumulated assets increasingly behave like a one-time investment of the total amount. Depending on market performance, a lump-sum investment may also prove more favorable. Investing in securities involves both opportunities and risks.
Most funds come in two types:
- Distributing: This variant pays out part of the generated income (e.g., interest or dividends) to your current account on a specific date each year.
- Accumulating: This variant automatically reinvests the income back into the fund. You don’t need to take any action. This option is suitable for investors who want to invest their money for the long term.
You can purchase funds via the George online banking platform or by contacting your advisor at Erste Bank and Sparkassen.
Your Benefits
- Investments possible from as little as 50 euros per month
- Broad risk diversification through diversified portfolios
- Opportunity for capital growth
Confused by Fund Terminology?
Please Note the Risks
- Fund prices fluctuate depending on the securities they contain
- Payouts depend on market developments; capital losses are possible
- Funds may involve various risks, such as currency, market, issuer, or sector risks
Still Have Questions About Our Products?
Our Funds
Please consider the opportunities and risks involved in investing in securities.
Equity Funds
Bond Funds
Mixed Funds
Pension Reserve Funds
Funds for Profit Allowance
Sustainable Funds
Disclaimer
This document is an advertisement. Please refer to the prospectus of the UCITS or to the Information for Investors pursuant to Art 21 AIFMG of the alternative investment fund and the Key Information Document before making any final investment decisions. Unless indicated otherwise, source: Erste Asset Management GmbH. Our languages of communication are German and English.
The prospectus for UCITS (including any amendments) is published in accordance with the provisions of the InvFG 2011 in the currently amended version. Information for Investors pursuant to Art 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in connection with the InvFG 2011. The fund prospectus, Information for Investors pursuant to Art 21 AIFMG, and the Key Information Document can be viewed in their latest versions at the website www.erste-am.com within the section mandatory publications or obtained in their latest versions free of charge from the domicile of the management company and the domicile of the custodian bank. The exact date of the most recent publication of the fund prospectus, the languages in which the Key Information Document is available, and any additional locations where the documents can be obtained can be viewed on the website www.erste-am.com. A summary of investor rights is available in German and English on the website www.erste-am.com/investor-rights as well as at the domicile of the management company.
The management company can decide to revoke the arrangements it has made for the distribution of unit certificates abroad, taking into account the regulatory requirements.
Detailed information on the risks potentially associated with the investment can be found in the fund prospectus or Information for investors pursuant to Art 21 AIFMG of the respective fund. If the fund currency is a currency other than the investor's home currency, changes in the corresponding exchange rate may have a positive or negative impact on the value of his investment and the amount of the costs incurred in the fund - converted into his home currency.
Our analyses and conclusions are general in nature and do not take into account the individual needs of our investors in terms of earnings, taxation, and risk appetite. Past performance is not a reliable indicator of the future performance of a fund.