There is a wide variety of investment funds on the market. In principle, an investment fund may invest not only in equities but also in other securities, real estate, precious metals, art, noble wines … or even in other investment funds.
Depending on the type of investors they are intended for and the investments they make, investment funds are more or less regulated and monitored by the authorities supervising the financial markets.
The most regulated and supervised investment funds are “undertakings for collective investment in transferable securities” (UCITS). As their name suggests, UCITS may exclusively invest in securities, i.e. in shares, bonds and money market instruments. As UCITS are primarily intended for retail investors, we dedicate a separate article to this type of investment fund.
Investment funds are not a recent invention. Their concept dates back to the 18th century. In 1774, a similar organization called “Eendracht Maakt Magt” was established in the Netherlands. The “West Cornwall Mining Investment Company” was born in Britain in 1836, the Swiss Société civile Genevoise d’emploi de fonds in 1849. The “Scottish American Investment Trust” dates back to 1873, the “Boston Personal Property Trust” to 1894 and the German “Zickert’scher Kapitalverein” to 1924. The first Luxembourg investment fund, “FCP Eurunion”, emerged only in 1959.
