FlowBank

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Invest in over 2'000 funds across regions, sectors, styles, and markets to leverage the best fund managers' investment ideas.

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The FlowBank advantage

Straightforward pricing

0.15% (from 8 CHF /USD / EUR flat) Custody: 0.10 % (max CHF 50 per quarter*)
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Additional bank-end fees are possible. You can find this information in the prospectus of the fund company.
*Unless otherwise stated in a specific communication to your attention.

What are the benefits of funds?

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Diversify and lower your risk

Access a wide range of asset classes, including global stocks, bonds, and commodities.

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Visibly low prices

Start investing in leading funds with the most competitive prices in Switzerland.

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Easy and effortless

One investment gives you exposure to dozens of assets.

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Professionally managed

Fund managers do all the work. They select the securities and monitor the performance of the fund.

Learn more about funds

1 December 2021

What is a Fund? | 6 Types of Funds Investing

There’s no shame in asking for help. Investing in a fund is an effective way to invest with the help of professional investors at top financial institutions.

10 December 2021

How do funds work?

For individual investors looking for professional management of some portion of their stock portfolio and/or bond portfolio, the go-to option is a mutual fund.

5 January 2022

ETFs vs Funds - Which is the Best Investment?

Exchange Traded Funds (ETFs) are rapidly becoming the investment vehicle of choice. What are the pros and cons of ETFs vs mutual funds? 

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Lowest fees in Switzerland

Benefit from leading market prices, tightest spreads, and lowest commissions across all asset classes.

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True multi asset platform including leveraged products 

Trade financial markets globally with access to 7 asset classes and the best prices.

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As a regulated Swiss bank, we guarantee the security and protection of your assets. Swiss deposit insurance up to 100,000 CHF.

FAQ

What is an investment fund?

An investment fund is a collection of investments, typically managed by a professional investment manager. An investment fund serves its clients in a variety of ways, including to provide private individual investors with a way to pool their resources as clients of the fund to diversify their investment portfolios. There are many different types of investment funds, including stock funds, bond funds, and index funds as well as hedge funds.

How does an investment fund work?

An investment fund is a pool of private capital that is managed by a professional money manager. The fund is typically used to invest in a variety of different assets, such as stocks, bonds, and other securities. The management team at the fund will use the money in the fund to buy and sell these assets in an attempt to generate a profit for the investors.

Clients of the fund (i.e. the investors) do not have to worry about making investments or structuring their portfolio themselves, as this is all done by the fund manager. Instead, they simply need to decide how much money they want to invest in the fund. The manager will then use this capital alongside the capital of all other clients to buy and sell the assets in the fund.

Investments in funds can be a great way for investors to diversify their portfolios and to get professional money management. However, it is important to remember that these funds can lose money as well as make money, so investors should always carefully consider their risks before investing.

What are the types of investment funds?

There are four main types of investment funds: equity funds, fixed income funds, balanced funds, and money market funds. Equity funds invest in stocks and can either involve active or passive management. Fixed income funds invest in bonds and other debt instruments, and are typically managed passively. Balanced funds have a different structuring because they invest in both stocks and bonds, and are usually actively managed. Money market funds invest in short-term debt instruments and are managed passively. There are also alternative funds to give clients the chance to invest in areas like private equity and commodities. Alternative assets like private equity or real estate may be subject to more risk than public markets like equities.

Aside from asset class, there are two main types of investment funds, closed end and open end. Each has its own advantages and disadvantages, so it's important to understand the difference before making a decision. There are a few key differences in structuring between closed end funds and open end funds. Closed end funds are typically offered by investment companies and are not required to redeem shares, while open end funds are offered by mutual fund companies and are required to redeem shares. The structuring of closed end funds also tends to have a higher expense ratio than open end funds. Additionally, closed end funds often trade at a premium or discount to their net asset value in the markets, while open end funds trade at their net asset value.

How to choose investment funds?

When it comes to choosing funds, there are a few key factors for prospective clients to consider before making the investments. First, you need to consider your own personal and private investment goals and objectives. What are you looking to achieve with your investment? Second, you need to consider your risk tolerance. How much risk are you willing to take? Hedge funds are typically only available to professional investors or high net-worth individuals because of the higher risk. Third, you need to research the various investment companies available to you and compare their performance as well as any tax implications

How do I buy funds?

If you're thinking about investing your capital into an investment fund, you may be wondering how to actually go about buying one. Fortunately, it's relatively easy to do. The first step is to download then login to the FlowBank app or trading platform to decide which type of fund you want to invest in. 

There are many different types of funds available for FlowBank clients, offered by top fund management companies,  including Blackstone, Blackrock and Pimco. Once you've decided which type of fund is right for you, the next step is to find a reputable fund management company to invest with that meets the regulatory standards of your country. FlowBank only works with the most reputable mutual fund providers but it's still important to do your research before making a decision.

Once you've selected a mutual fund company, you can then begin the process of making the mutual fund transactions. The process is very straightforward. If you are already a FlowBank client, you need simply deposit the required capital and place the order to buy. If you are not yet a client, you'll simply need to open an account using the application form on FlowBank.com. You can then set up automatic investments so that you don't have to worry about multiple transactions or buying mutual funds on a regular basis.

How are funds priced?

Mutual funds are priced using a variety of methods, depending on the type of fund, legal entity and the company offering the fund. For example, index funds are priced using a formula that takes into account the value of the underlying securities, while actively managed funds are typically priced using a fair value approach. In general, mutual fund prices are calculated by taking into account the net asset value of the underlying securities, plus any management fees or expenses associated with the finance of the fund. Hedge funds are less tightly-regulated and will release regular performance updates to their clients.

What are the benefits of investing in funds?

There are many benefits to fund investments, such as diversification, professional management, and the potential for high returns.

Diversification is one of the biggest benefits for the clients of investment funds. When you invest in a fund, you are investing in a basket of different securities from equities to real estate, which helps to spread out your risk. 

Professional management is another benefit of investing in funds. When you invest in a fund, you are hiring a team of professionals to manage your capital using best practice. A fund management company can hire the best talent, have greater access to the companies they invest in and can best navigate regulatory, legal and tax requirements. The alternative is your own private management of your estate, which might be less-informed, putting your finances at potentially greater risk. This can help to take the guesswork out of investing in private, and can lead to better returns.

The potential for above-average performance on your invested capital is another benefit of investing in funds. When you invest in a fund, you are pooling your money together with other investors. Wealthy individuals will typically have a large portion of their estate invested in mutual funds and hedge funds. This gives the fund managers the ability to make high-risk, high-reward investments that might not be possible for individual investors or regulated entities like insurance companies. Of course, there is always the risk of loss when investing in any security, but these risks are mitigated by the diversification inherent within the funds.

What are the disadvantages of investing in investment funds?

There are several disadvantages clients may face when investing in funds. Firstly, funds are not an equivalent to private savings accounts because your capital is at risk. Investment funds are subject to market risk, which means that the value of your investment can go up or down depending on the performance of the overall market. Second, investment companies can sometimes have high fees and expenses that are paid to the management team and to cover the cost of regulatory requirements, which can eat into your returns. Finally, some registered investment funds such as those invested in real estate can be illiquid, which means that it can be difficult to sell your shares if you need to cash out.

What is an example of an investment fund?

There are many different types of investment funds, but one common example is a mutual fund. Mutual funds are funds that are owned by a group of investors who all pool their money into the fund's capital, which is then invested in a portfolio of financial securities. Mutual funds are a popular way for everyone from small investors to insurance companies to practice diversifying their portfolios and get exposure to a variety of asset classes, including stocks, private equity and real estate.

Why choose FlowBank for your investment funds?

We are a highly experienced and reputable firm with a proven track record of supporting clients in Switzerland and worldwide. We offer a wide range of investment products, including the high-performance funds from the biggest and best known companies and fund managers. Our registered services are tailored to meet the goals of your investments as well as specific regulatory needs and laws. Our firm is committed to providing outstanding service and support, and we have a team of dedicated professionals who are ready to help you grow your investment portfolio. Contact us today to learn more about how we can help you achieve your financial goals.