Hedge funds

Despite the name, hedging transactions are not the primary purpose of such funds. Since these funds are aimed at generating absolute income, they make investments which conventional funds are not allowed to make (speculation on market declines, short sales, use of derivatives, financing investments by borrowing). This enables hedge funds to record positive returns irrespective of the market situation.

Speciality fund

A fund which differs from conventional investment funds in that it adopts a special investment approach or focuses specifically on certain countries, industries or investment instruments.

Other funds

Investment funds which are neither securities funds nor real estate funds. They may contain investments which have limited marketability, are subject to greater price swings, have a limited diversification of risk or which are difficult to value (e.g. investments in precious metals, commodities, options, forward contracts, units of other investment funds and other rights).

Other funds with special risks

Investment funds which, unlike funds in the other funds category, have a special risk which is not comparable to the risk of securities funds. There must be explicit reference to this fact in the fund name, the prospectus and in advertisements. The units of such funds may only be sold on the basis of a written agreement in which the special risk is stated.