15th March 2022

Understanding investment funds

Investment funds, also known as "mutual funds" or "undertakings for collective investments (UCI)", are investment products created to allow investors to pool their savings and invest in securities they would not be able to access on the same terms individually. Who are they for? And how can I invest?

All you need to know about investment funds!

  • Does the word "SICAV" mean anything to you?

A “SICAV” is an open-ended investment company, which means that anybody investing in it becomes a shareholder of the company.

A “SICAV” can, for example, be a limited company collecting contributions for a pension fund. The fund's capital increases as and when new investors join.

  • Have you heard of "LUXFUNDS"?

LUXFUNDS are investment funds created by Spuerkeess over thirty years ago to allow individual investors and businesses to invest and grow their savings over the short, medium, or long term.

Investment funds What are they?

Imagine you and your friends want to organise a joint birthday present for another friend. You set up a kitty to raise a certain amount of money and everyone contributes to it. Once all the money has been collected, you buy the gift and give it to the lucky recipient.

An investment fund works along the same lines, but not all investors necessarily contribute the same amount. The amounts invested are therefore divided into units. Each investor knows how many units he owns and the corresponding entitlements and obligations. The capital is then invested in shares, bonds, etc. and the shareholders receive the yield they generate.

Investment funds video:

How do they work?

Investment funds collect many investors' savings (which become investments). They pool investors' assets, enabling several people to invest together in a fund offering access to securities they would not be able to access on the same terms individually.

Investors entrust their money to an expert who will manage their investments on their behalf, in accordance with the asset allocation rules and the risk profile set for each fund.

Which investment funds do exist?

Spuerkeess invests assets in several SICAVs („Société d’Investissement à Capital Variable“).

Old-age savings funds, pension funds, etc. – you have probably heard of these products and you may already hold shares in such a fund to secure your future.

Pension funds are probably the most common type of funds. You can invest in them at any moment and for a fixed period of time. Once your pension fund matures, you will receive a certain sum, as stipulated in your initial contract, either in a one-off payment or as a regular monthly income.

Spuerkeess' funds

As well as the investment funds mentioned above, there are many other funds to choose from. Spuerkeess offers the LUXFUNDS range which includes a variety of investment funds, including green funds that only invest in securities that meet certain CSR criteria.

Investment funds are for you if:

  • you want your savings to be managed by experts;

  • you are seeking flexibility to buy and sell at any time;

  • you want to access a wide range of securities.

How to invest in one or more funds?

To open a pension fund or invest in the LUXFUNDS range, go to S-Net:

  • In the store for S-Pension
  • In the "Financial instruments" for LUXFUNDS (provided you already have a securities account).

For further information, please contact your advisor, who will help you make your choice.

The golden rules for investing in an investment fund:

  • Read the fund's investment policy and check its risk category. It is important to read the fund prospectus or KIID* before you invest.

  • You must not invest all your savings in the same fund – diversify your investments.

  • Find out about the fund's transaction fees payable when you invest.

*KIID = Key Investor Information Document

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