Some of the above funds may have specific areas of focus. Prime examples: Equity and Bond funds. Both types of funds can, for example, set a focus with regard to the region from which the shares or interest-bearing securities are to come.
In the case of equity funds, a lack of focus and thus a wide choice between securities from all over the world is indeed common, but there are also special equity funds that deliberately invest "only" in Europe, Germany, but also in emerging markets, for example. If two or more essential features are to be emphasized in the classification of funds - as in the case of some equity funds, the respective investment values and the focus on regions - this is an occasion that can give rise to further fund designations. You can also learn more about a geographic and/or economic focus in the second part of this article.
Classification by theme, sector or strategy
In the case of theme funds, the focus is not on the investment value, but on the "subject." Such a subject may be, for example, the Internet theme. This example illustrates that the transitions between theme and sector funds - as also emphasized by this article on the Internet pages of the Frankfurt Stock Exchange - are again fluid.
With regard to the differentiation between equity funds and theme funds, it appears important above all that a theme fund does not have to limit itself to shares as an investment object.
However, these also play a central role in theme funds. Here is good point from exness-ar: "لا توجد أوجه تشابه بين الصناديق المواضيعية وصناديق القطاع فحسب ، بل أيضًا بين هذين النوعين من الصناديق والصناديق التي تستند إلى استراتيجية محددة في exness تسجيل الدخول. الصندوق الأخلاقي بمثابة مثال رئيسي. يجب على مدير هذا الصندوق اتباع استراتيجية تبرر بطريقة ما صندوق التعيين الأخلاقي."
"There are not only similarities between theme funds and sector funds, but also between these two types of funds and funds that are based on a specific strategy. The ethical fund serves as a prime example. The manager of such a fund must pursue a strategy that in some way justifies the designation ethical fund."
Accordingly, he will establish criteria which must be fulfilled by the investment assets in. An ethical fund can become a sector fund if, for example, there is a concentration on renewable energy. However, it can also be understood as a theme fund. Theme and sector funds can have a higher risk than, for example, equity funds with a broader diversification.
Special case of index funds
With a little imagination, the term index fund can optionally be assigned to the first or second example group in this article. According to the main investment object, index funds track the performance of an underlying index such as the DAX. Here, for example, you bet on securities that appear in the index or on swaps. However, to a certain extent, index funds also make use of a strategy, which consists precisely of replicating the index without active management.
The most important points at a glance:
The fund world distinguishes between open-end and closed-end funds.
There are countless designations that are intended to indicate a certain characteristic of an open-end investment fund.
Such a characteristic may be, for example, the main investment object of a fund. This results in terms such as equity fund, bond fund, mixed fund and money market fund.
Funds whose names result from the main investment object can sometimes be further differentiated with regard to a specific focus.
Other characteristics for fund names include themes, sectors and strategies. These three fields are similar in essence.