The term "fund" refers to a pool of assets accumulated for the purpose of collective capital investment. The fund market on SIX Swiss Exchange comprises
The Swiss Federal Act on Collective Investment Schemes (CISA) regulates these forms of investment.
- exchange traded funds (ETFs),
- exchange traded structured funds (ETSFs) and
- other investment funds.
Collective investment schemes are advantageous because they pool the money of investors and therefore can invest in assets such as shares, bonds, real estate and other financial instruments in a professional manner and at more favourable conditions. Funds are based on the concept of risk diversification).
Private investors benefit from the ability to invest even small amounts in a broadly diversified portfolio. Because the funds assets are invested in a wide array of individual securities, losses incurred by a specific security have a lesser impact on the overall performance of the portfolio. Investment funds are offered by various financial service providers and differ in their composition. Exceptions in this regard are funds that only invest in a single underlying instrument (e.g. commodities).