What is a Fund?
Investment funds are preferred by investors who do not wish to be
continually "concerned" with their investments and prefer leaving
the monitoring and analysis to professionals.
Investment funds are administered either by a capital investment company or an investment company. The fund's assets are held at a custodian bank. Shares in a fund may be bought or sold through capital investment companies or the exchange. Fund shares are generally issued with a loading charge to cover sales costs.
In XTF Exchange Traded Funds, a Deutsche Börse market segment, fund shares are listed by the issuers and are traded like regular shares without loading charges. The price of the fund shares is constantly updated and published. Furthermore, investors are often charged no management fee at all or only a comparatively low fee.