Investment funds are baskets of securities chosen because of their growth prospects by asset management companies that are experts in financial markets. These funds work on a co-ownership basis: when you invest in a fund, you acquire ownership that corresponds to a share of a basket of equities or bonds already selected and actively managed by experts. This means investing in funds can feel safer than buying individual securities, particularly for a novice. Moreover, investment funds tend to have variable capital, which allows you to trade in your securities on a secondary market at any given moment. The funds can take several legal forms, such as the Société d’Investissement à Capital Variable (SICAV) and the Fonds Commun de Placement (FCP). There are three broad categories of fund: passively managed investment funds, actively managed investment funds and hedge funds.

The government is increasingly keen to attract entrepreneurs to Luxembourg as well as to nurture entrepreneurial ambitions among the country’s residents - and is providing financial incentives and other forms of assistance to encourage them.

You want to invest in a property in the Grand Duchy and then make a rental? At first sight, it seems an excellent decision! Investing in a rental property remains attractive, especially in a country where the market for rented residential real estate continues to display a high potential.