Types of Investment Funds in Switzerland

There are several types of investment funds available for registration in Switzerland. Discover below what their features are, for a correct choice when you decide to invest in this country.

How are investment funds categorized in Switzerland?

Swiss investment funds can be sorted based on:

• the applicable legislation;
• legal forms they can be registered under;
• types of assets and investment strategies.

What are the main types of investment funds in Switzerland?

Based on legislation, Swiss investment funds can be categorized into:

• open-ended structures;
• closed-ended structures.

NOTE: Each category of funds can then be divided into sub-categories based on the type of structure used for establishment.

What are the types of open-ended investment funds available for registration in Switzerland?

The following:

• the contractual investment fund, which is not a corporate entity that relies on a contract between the investors and the management company;
• the investment company with variable capital (SICAV), which is a corporate structure with a capital that depends on the number of subscriptions, which can be redeemed by the investors.

What are the main features of open-ended investment funds in Switzerland?

The investment market for open-ended investment funds is regulated by the Collective Investment Schemes Act (CISA). An open-ended vehicle in Switzerland designates a type of fund in which the investors are not imposed with any restrictions on the number of shares that can be issued within the respective fund. 

What are the types of closed-ended investment funds available for registration in Switzerland?

Closed-ended funds can be registered as:

• the investment company with fixed capital (SICAF), which is a corporate entity that issues a fixed number of shares and capital, which cannot be redeemed by the participants;
• the limited partnership for collective investments, which is used for alternative investments in various types of assets;
• the limited qualified investor fund (which can also take open-ended forms), introduced on 1 March 2024 in the Swiss legislation for investment funds, and which has the great advantage of being exempt from approval from FINMA.

What are the main characteristics of closed-ended funds in Switzerland?

In a closed-ended vehicle, the investors will be allowed to issue a specific amount of shares. In a closed-ended fund, the investors will pool a fixed amount of capital through an initial public offering. 

How are Swiss funds categorized based on the assets and investment strategies?

Here are the characteristics Swiss investment funds are usually known by:

• equity funds, which enable investments in stock in Swiss or foreign companies;
• real estate investment funds, which enable investments in residential, commercial, office space, but also in other real estate investment companies;
• money market funds, which enable investments in debt securities;
• bond funds, which allow investments in government or corporate bonds;
• strategy funds, which enable investments in various assets, usually a combination of real estate, bonds, commodities, equity, etc.;
• Alternative Investment Funds, which enable investments in venture capital, commodities, and private equity.

NOTE: In Switzerland, hedge funds are categorized as Alternative Investment Funds.

How do I choose a type of investment fund to open in Switzerland?

Here are the main aspects to consider when setting up an investment fund:

• types of investors you want to address;
• minimum capital required for the fund;
• the licensing requirements;
• the management conditions;
• taxation.

Please contact our team of affiliates in Switzerland for more details on the Swiss investment vehicles that can be registered by foreign investors.