Investment funds – an important financial instrument for making provisions for the future and for sustainability

The German Investment Funds Association (BVI) announced the first World Fund Day on 19 April more than ten years ago. Since then, a great deal has happened throughout the investment fund industry, and the image of capital investments has also changed considerably since then.

Sustainability has swept the industry as the most important topic, and has brought about a paradigm change. Investors are seen as a key player for the implementation of the EU’s Green Deal and in the fight against climate change. They are believed to have the power to redirect financial flows and place investments in a way that can have a positive impact on the environment, society, and corporate governance.

Credible player for sustainable investments

During the past ten years, Raiffeisen Capital Management was also one of the first asset managers in Europe to reorient itself and shift its focus to sustainable investment. Today, the Viennese fund provider is also one of the most credible players on the international stage when it comes to responsible capital investment. Of the EUR 43.2 billion in assets under management (as of the end of March 2024). more than half is already being managed according to ESG criteria.

All of the sustainability funds of Raiffeisen Capital Management hold the recognised "Austrian Environmental Seal" and they regularly receive top marks for their sustainability quality in peer group comparisons. For example, 18 funds of Raiffeisen Capital Management have a three-star FNG seal (see Quality Labels for more information).

Prepare for the future with EUR 3 per month

One can invest in funds with relatively small amounts. With a fund-based saving plan, this is possible with as little as EUR 3 per month. This form of investment offers many young people – but of course also older people – the possibility to invest on the capital markets with relatively small amounts of money. The risks of capital market investments must also be taken into account in this, and can also include losses.

Fund investments are segregated assets

The securities in a fund are owned by the investors. The fund company only manages the fund in trust. This means that the investment assets are separate from the capital of the fund company and are held in safekeeping at a bank as the depositary. Should the fund company or depositary encounter financial difficulties, this would not affect the fund assets. In addition, strict legal requirements apply to investment funds and fund providers.

ESG stands for Environment, Social, Governance