The entry and exit costs of an investment fund

Different types of investments

Investment funds can contain a wide variety of investments. For example, there are investment funds with a portfolio consisting of real estate, bonds and shares. In addition, it is possible to have a combination of different investments, which is called a mixed fund . There are also various funds that focus on a specific group or region of a country. Think of markets such as Europe or Asia.

An investment fund is often called a SICAV or a mutual fund abroad. The term SICAV is also an abbreviation for the French name for an investment company that has a variable capital.

Different types of investment funds

Although there are several types of investment funds, the most well-known are the closed-end and open-end funds . An open-end fund continuously buys new shares or issues them. In this way, it is possible for investors to easily enter, but also to exit. A closed-end investment fund, on the other hand, has a certain amount of capital. In this case, it is possible to trade shares, but no shares can be bought or issued. A closed-end fund takes a position at the start of an investment fund.

The entry costs and exit costs

Investment funds charge different purchase costs to enter an investment fund. If an investment fund is relatively new, it is sometimes possible to enter the investment fund for free. It is not often the case that people can exit investment funds for free. The entry and exit costs of an investment fund amount to approximately 0.5%.

The entry costs of an investment fund

When you want to start investing in funds, it costs a certain amount. With most funds, you have to pay entry costs when you want to register. These costs are lower than when you register with the investment fund during the registration period. During this period, an investment fund is marketed. On a bank’s website, it is possible to look up information about funds. Many details are stated here, such as the term, registration period, etc.