Ch. 1BEGINNER ~10 mins

Fund Vehicles & Models

Choosing the right structure

A Luxembourg investment fund is generally described as an Undertaking for Collective Investment (UCI). Every UCI shares three defining characteristics:

▸Pooling money from multiple investors
▸Investing according to a defined policy for investors' benefit
▸Risk spreading — avoiding dangerous concentration in any single position

Why set up a UCI?

UCIs give investors access to: income and/or capital growth, diversification, professional management, shared costs, and investments that some investors cannot easily reach alone due to market access or qualification constraints.