Inhaltsseite:Funds explained


Funds explained

Participate in a diversified way, with smaller amounts, in professionally managed assets.

The key benefit of funds

With an investment fund you can invest just small amounts in a highly diversified portfolio of common assets professionally managed by investment specialists.

Actively and passively managed (indexed) funds

The objective of an actively managed fund is to outperform the selected benchmark or market. This is achieved through active management by the fund manager. Experts prepare comprehensive analyses for this purpose and also access our multiple award-winning research. In turn, the research team analyses the global economy and equity and bond valuations.

The objective of an indexed fund, however, is to map the selected benchmark or market as accurately as possible. This type of fund makes use of ultra-modern portfolio management systems. In general, indexed funds are more cost-effective as they do not aim to realise additional yield in comparison with the benchmark and have lower administrative expenses.

There are two types of indexed funds: Index Funds and Exchange Traded Funds (ETFs). The main difference is the manner in which the units can be purchased or sold. Like shares, ETFs are traded on a stock exchange throughout the day and prices are set on a continuous basis. In contrast, the prices of Index Funds are set once per day. Both types of funds therefore have different transaction costs. 

Our fund classes

An investment fund generally has various share classes (known as tranches) that are accessible to different customer segments and which have differing cost structures. The fund class is mentioned behind each fund name. Swisscanto Invest uses the following designation for fund classes that are accessible to all investors:

  • A for actively managed funds
  • F for indexed funds

Furthermore, the class designation contains information as to whether the fund distributes its earnings (A) or reinvests them (T), whether the fund is currency hedged (H) and in which currencies it invests (e.g. CHF). 

Your benefits at a glance

Diversification & risk spread

A fund invests in a variety of securities. This portfolio diversification significantly reduces your investment risk. The key benefit in comparison with investing in individual securities is risk diversification or risk spread.

Professional asset management

You are placing management of your assets in the hands of investment experts. They have many years of experience, a high level of specialist knowledge and a professional infrastructure. Thus investors benefit from the same professional administration and expertise that is also implemented for major institutional customers.

Investing smaller amounts of money

Investment funds are available to everyone. Large amounts of capital are not required to purchase fund units. You therefore have access to established funds and international markets even with smaller amounts of money.

Reliable investor protection

The Federal Collective Investment Schemes Act (CISA) and the Swiss Financial Market Supervisory Authority (FINMA) ensure effective and reliable protection for investors. In addition, investment funds are special assets and therefore are not affected, for instance, in the event of a fund provider's bankruptcy. This gives you a high level of security. 

High liquidity

In principle, you can buy and sell fund shares at any time. This gives you flexible room for manoeuvre in your investments.

High level of transparency

The net asset value (NAV), i.e. the fund's performance, is calculated and published daily on the Internet, in newspapers, etc. You thus know how your fund is performing at all times.