Investment funds are increasingly attractive for investors in Slovakia. Tomáš Vall, managing attorney at L/R/P advokáti, s.r.o., explains which investment funds are worth investing in and what kind of investment appreciation you can expect.

In which investment funds do you specialize in your profession and what is the interest in investing in these funds?

We specialize mainly in Czech funds of qualified investors with a closed investor structure, with which we have many years of experience. A close legislative environment, the absence of a language barrier and accessibility are factors that investors know how to appreciate. This is also linked to the long-term increase in the interest of Slovak investors in investing in these funds. In the last period, however, e.g. higher interest rates on time deposits with higher liquidity caused a decrease in the volume of investments in funds. Clients preferred shorter term deposits instead of longer-term investments in funds.

So how much can an investor realistically expect to appreciate their investments?

It depends on several factors. First of all, it is the very setting of the fund and its investment focus. Then there is the market situation, the development of which is fundamental and which we will not influence. We also consider it important to choose a suitable fund manager, who is backed by clear results and who can respond flexibly to emerging investment opportunities. From experience, we can state that the investor's return has so far beaten inflation, but with rising interest rates, other deposit products are serious competition. The situation is different for professional investors who prefer investing in riskier funds and short-term return is not the only criterion for their decision. Funds are also seen from the point of view of their other functions as a means of diversifying risk or financing projects, where they allow pooling the resources of several investors with a similar investment appetite. This type of investor has recently been our typical client.

You can find the entire interview on the website of the magazine .týždeň: Investment funds attract more and more Slovaks