According to the legal definition, an investment fund is an undertaking for collective investment that collects capital from a number of investors in order to invest it according to a fixed investment strategy for the benefit of these investors. Operating companies outside the financial sector are not considered investment funds.

The terms and conditions of investment regulate, among other things

• the relationship between you as the asset management company and the investors
• the name and registered office of your asset management company
• the principles according to which assets are selected and acquired
• the ownership structure of investment funds
• what conditions apply to the redemption and conversion of units or shares
• whether income from the investment fund is distributed or reinvested
• the principles according to which sub-investment funds are formed
• whether and what costs investors have to pay, e.g. issue premiums, management fees, redemption fees

You may only attach the investment conditions to your sales prospectus once they have been approved by BaFin. In addition, you must make the terms and conditions of investment available to the public in the currently valid version on your website.