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Understanding Investing 简体中文网页 Members section

Eligible assets

UCITS funds are subject to rules on what kind of assets they are allowed to invest in (eligible assets), which you will find in the investment policy section of a fund’s prospectus. Generally they must invest in transferable securities or in other liquid financial assets – for example, money-market instruments, bonds, shares and any other instruments offering the right to acquire these securities through subscription or exchange, as well as other funds and bank deposits.

Under certain conditions they may also use financial derivative instruments, such as futures, options or swaps based on an eligible UCITS asset or an approved financial index – either for investment or hedging purposes (to reduce the risk of the portfolio). Since the UCITS directive defines eligible assets in general terms, European regulators have issued additional guidelines to ensure there is a common understanding of what kind of assets may be acquired by a UCITS fund.

Updated on 12/03/12  
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