Advantages
Funds are bankruptcy protected: As so called 'special assets', your investments are separated from the investment company and the bank by which it is controlled. Investor protection is a cornerstone of funds. Investment companies are required by law to manage investor assets as trustees, and to act solely in the interest of the investor.
Funds are transparent: Investors can always get aconclusive overview of the investment situation and the fund's performance. Index funds - especially ETFs - offer daily transparency about the fund and/or the index. Because fund share prices are published daily, all funds offer transparent results.
Funds calculate fair pricing: Fund share prices correspond to the inventory value of the fund assets. Fund share prices are calculated daily in accordance with objective and comprehensible criteria. These calculations are performed by the dpository bank, not the investment company. And supply and demand of shares doesn't influence fund share pricing.
Conclusion:
Funds have a place in every investment depository. They are an ideal vehicle for targeted wealth building and strategic wealth structuring.
