With the purchase of an investment unit, an investor acquires a stake in an open-ended investment fund. A capital management company collects the money from investors and transfers them to a fund. This fund is then invested in accordance with the fund’s investment guidelines. The investors participate in this special fund.
- Investment shares can be acquired for a wide variety of market segments.
- Investors can acquire investment units in different ways. The basic requirement is of course a securities account with a bank.
- Unlike stocks or bonds, investment units have internal costs.
Investment shares with price opportunities
Investment shares can be acquired for a wide variety of market segments. The most common fund groups
- Equity funds
- Money market funds
- Pension funds
- and open Real estate funds
Depending on the type of investment, there is a certain volatility that leads to daily price changes. Shares in equity funds offer the greatest price opportunities, but also require a longer-term investment horizon. Investment units in bond funds aim less for price gains than for long-term continuous income. The same applies to open real estate funds. Money market funds are useful when funds are to be parked temporarily. However, due to the cost burden, they are often only the second best solution compared to overnight money.
Flexible acquisition of investment shares
Investors can acquire investment units in different ways. The basic requirement is of course a securities account with a bank.
The savings plan
Investment shares are ideal for long-term asset accumulation. As part of a savings plan, shares are bought monthly for a fixed amount. This is usually possible from 50 euros per month, in some cases even from 20 euros. This is where the peculiarity of investment units becomes apparent: They do not have to be purchased in whole denominations, like a bond, for example, but can also be booked into the securities account in fractions with up to four decimal places. In the end, the purchase at a fixed savings rate leads to a higher return than if an investor buys a fixed share each month due to the average cost effect in the event of fluctuating prices.
The one-time system
In the case of a one-time investment, there are two options to choose from. Either a saver invests a fixed amount and receives a certain amount of fund shares, again up to four decimal places, booked into the deposit. Or he decides to purchase a fixed amount of shares.
Purchase on the stock exchange is possible
There are two ways of acquiring investment units. Classically, the fund share is obtained from the respective fund company. An issue surcharge will be charged for the issue. Depending on the type of fund and fund company, this ranges from 0.5 percent for money market funds to six percent for equity funds. Alternatively, investment units can also be accessed via the stock exchange can be acquired. Instead of the issue surcharge, the brokerage fee for the securities order will be invoiced. The sale of shares to the fund company is free of charge, but transaction costs are due again in the event of a sale on the stock exchange.
Unlike stocks or bonds, investment units have internal costs. Since investment funds have to be managed, there is a management fee: The fund management continuously monitors the securities portfolio of actively managed funds and buys or sells paper. In some cases, the fund companies also charge a success fee.
Investors do not have to pay these expenses directly – the costs are taken from the fund’s special assets. In order to keep the cost side as low as possible, it is advisable to purchase investment units through a broker who grants the highest possible discounts on the front-end load. The difference between a premium of five percent and a premium of three percent are ultimately noticeable in the net return.