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UCITS: Difference between revisions
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UCITS - or "[[undertakings for the collective investment in transferable securities]]" - are regulated European investment funds, generally aimed at '''retail''' investors. Compare and contrast | UCITS - or "[[undertakings for the collective investment in transferable securities]]" - are regulated European investment funds, generally aimed at '''retail''' investors. | ||
Compare and contrast '''[[alternative investment fund]]s''' which are regulated under {{tag|AIFMD}}, which are professionals-only funds (hedge funds etc). The regulations are in some ways converging, but there are still a lot of qualitative differences in the types of risks that an [[AIF]] can take compared to a {{tag|UCITS}}. | |||
{{tag|UCITS}} funds must meet strict criteria as to how they are set up, managed and marketed, and as to the portfolio of asset a {{tag|UCITS}} fund is allowed to invest in: There are concentration limits and other criteria which ensure diversity of risk; assets must be liquid, there should be very limited use of [[leverage]] and the fund must ensure it has diverse exposure to trading counterparties, banks and so on. | {{tag|UCITS}} funds must meet strict criteria as to how they are set up, managed and marketed, and as to the portfolio of asset a {{tag|UCITS}} fund is allowed to invest in: There are concentration limits and other criteria which ensure diversity of risk; assets must be liquid, there should be very limited use of [[leverage]] and the fund must ensure it has diverse exposure to trading counterparties, banks and so on. | ||