Mutual funds are funds which are essentially open to any investor.

In Luxembourg, the EU UCITS directives form the legal basis for implementing mutual funds. They were translated into national law with the law of 17 December 2010 and have been in force since 1 July 2011.

Prompt implementation of the legal requirements in Luxembourg offers investors rapid access to the opportunities presented by new UCITS directives.

Depending on the investment and distribution strategy, an investment vehicle can be structured according to Section 1 (UCITS) or Section II (UCI) of the law of 17 December 2010:

1. Section I – Fund
2. Public distribution in EU countries is possible in a simplified form (EU passport)
3. Asset diversification:
   - Catalogue of investment items
   - Legal investment limits

1. Section II – Fund:
2. Public distribution abroad only possible to a limited extent (no EU passport)
3. Asset diversification:
   - No catalogue of investment items
   - No legal investment limits
   - Principle of risk diversification

Regardless of the chosen legal basis, a launch in the legal form of an FCP or SICAV/SICAF is possible. You can also use the structure of an umbrella fund with several subfunds and/or share classes.

Do give us a call and tell us about your fund project. We would be happy to work with you to determine the best strategy.