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1. What is an investment fund in Ukraine.
2. Types of investment funds in Ukraine.
   – CIF.
   – Mutual Fund.
   – By type.
   – By asset structure.
   – Venture fund.
3. Legal framework.
4. Structure of an investment fund.
   – Structure of a CIF.
   – Structure of a Mutual Fund.
5. The role of an asset management company.
6. Practical significance of investment funds.
7. Registration of funds / Purchase of ready-made ones.

An investment fund in Ukraine is one of the key instruments of collective investment that allows the pooling of funds from multiple investors for further investment in various assets. In the legal framework of Ukraine, this model exists in the form of collective investment institutions (CIIs). It is through CIIs that the mechanism is implemented whereby a professional manager forms an asset portfolio, while investors obtain rights through the fund’s securities. The main профильный act is the Law of Ukraine “On Collective Investment Institutions”, and state supervision in this area is exercised by the NSSMC. The law defines the legal and organizational basis for the establishment, operation, and termination of CIIs, the requirements for assets, and the procedure for the issuance, circulation, and redemption of fund securities.

For businesses, private investors, and lawyers, the topic of investment funds in Ukraine is important for several reasons. First, a fund can be used to legally consolidate capital and manage it within a special legal regime. Second, the CII structure is used not only for classic portfolio investments, but also for corporate structuring, development projects, real estate transactions, and venture models. Third, a proper understanding of the types of funds and their legal nature helps avoid mistakes when choosing an investment vehicle.

What Is an Investment Fund in Ukraine?

In everyday terms, an investment fund is a mechanism for joint investment of money. In legal terms, in Ukraine it is more accurate to speak of a collective investment institution. The law directly provides that a CII functions to attract investors’ financial resources and efficiently place them into assets permitted by law and by the fund’s investment declaration. Participants in a CII are persons who own the securities of such an institution: shares of a corporate investment fund or investment certificates of a mutual investment fund.

Types of Investment Funds in Ukraine

Corporate Investment Fund

A Corporate Investment Fund (CIF) is a legal entity established in the form of a joint-stock company and operating exclusively in the field of collective investment. It has its own charter, undergoes state registration as a legal entity, and is also registered within the NSSMC system as a CII. A CIF is characterized by the presence of a corporate shell: participants own shares in the fund, and the fund itself has an internal governance system provided for by special law.

Mutual investment fund

A Mutual Investment Fund (MIF) is not a legal entity, but a pool of assets owned by participants under the right of shared ownership and managed by an asset management company. This is why a MIF is considered a more “contractual” model: there is no separate legal entity, and the key role is played by the AMC, which organizes the fund’s activities, keeps records, and enters into agreements with the custodian, auditor, and other involved parties.

Types of Funds by Operational Type

Ukrainian law divides CIIs by type into:

• open-end;
• interval;
• closed-end.

An open-end fund is obliged to redeem its securities at the request of an investor at any time. An interval fund does so only during specified time periods. A closed-end fund, as a rule, does not redeem securities until the fund is terminated, and therefore is better suited for long-term or specialized investment projects. The law also establishes that a closed-end CII may only be fixed-term.

Types of Funds by Asset Structure

By their specific category, CIIs are divided into:

• diversified;
• non-diversified;
• specialized;
• qualifying.

A diversified fund must comply with asset concentration limits, which reduces risks for the investor. A non-diversified fund has more freedom in constructing its portfolio. Specialized funds operate in clearly defined asset classes, such as bonds, shares, government securities, or bank metals. Qualifying funds are also linked to a separate asset class, including real estate, credit assets, or commodity assets.

Venture Fund

A venture fund plays a special role in Ukraine. Under the law, it is a non-diversified closed-end CII that carries out only private placement of securities. In practice, venture funds are often used for corporate business structuring, investment in real estate, claims, equity stakes in companies, and other less standard assets. For this reason, the venture model is one of the most common in the professional environment.

Legal Framework of Investment Funds in Ukraine

The foundation of legal regulation is the Law of Ukraine “On Collective Investment Institutions.” It defines the concept of a CII, the procedure for establishing CIFs and MIF s, asset requirements, participant status, disclosure rules, and the procedure for state supervision. The current version of the law on the Verkhovna Rada website contains the up-to-date status of the document and the latest amendments.

In addition, the legal framework is formed by capital markets legislation, NSSMC regulations, and subordinate acts governing the registration of CII regulations, maintenance of the Register, licensing requirements for professional participants, and disclosure obligations. The NSSMC maintains the Unified State Register of CIIs, as well as the register of professional market participants, including asset management companies. This is important for checking the status of a fund before investing or providing legal support for a transaction.

Structure of an Investment Fund in Ukraine

CIF Structure

The structure of a Corporate Investment Fund is more complex because it is a separate legal entity. Its framework includes:

• fund participants;
• the general meeting;
• the supervisory board;
• the asset management company;
• the asset custodian;
• the auditor;
• the depository system;
• a property appraiser in cases provided by law.

In other words, a CIF has a corporate model with its own participant decisions, but the assets are still managed not directly by the fund itself, but by a professional AMC under a contract. This is what distinguishes an investment fund from an ordinary joint-stock company.

MIF Structure

The structure of a Mutual Investment Fund is simpler in form, but no less formalized. There is no separate legal entity here, and the center of the entire system is the asset management company, which:

• creates the fund;
• approves its regulations;
• organizes the issuance of investment certificates;
• keeps records of transactions;
• interacts with the custodian, auditor, and depository;
• discloses information and reporting.

Therefore, when it comes to a MIF, the key issue is precisely the verification of the AMC: its license, experience, status in the registers, and market reputation.

The Role of the Asset Management Company

An Asset Management Company is a professional participant in the capital market that manages the assets of institutional investors for remuneration. An AMC may simultaneously manage the assets of several CIIs, but it may operate only if it has the appropriate license. In fact, the AMC is the operational core of most funds: it makes investment decisions within the limits of the fund’s declaration, ensures compliance with legislative restrictions, and organizes interaction with the entire market infrastructure.

For the investor, this means one simple thing: it is necessary to assess not only the name of the fund, but also the party that actually manages it.

Practical Importance of Investment Funds in Ukraine

In Ukraine, investment funds are used in several main models. The first is classic collective investment, where investors contribute funds in order to receive income from professional portfolio management. The second is corporate asset structuring, which is especially typical for venture funds. The third is work with real estate, development projects, claims, and other assets for which the fund structure is convenient from both a legal and tax perspective. The Tax Code of Ukraine also contains separate provisions regarding CIIs, so when creating or supporting a fund, it is important to analyze not only the specialized law, but also the tax consequences of the chosen structure.

You can order a consultation from specialists regarding the registration of an investment fund on this page. You can choose and buy a ready-made investment fund here.

Conclusion

An investment fund in Ukraine is a complex but effective legal structure for collective investment and asset structuring. The main forms are CIF and MIF, which differ primarily in the presence or absence of legal entity status. By type, funds may be open-end, interval, or closed-end; by category, they may be diversified, non-diversified, specialized, or qualifying. The central role in this system is played by the asset management company, while supervision over legality and registration is exercised by the NSSMC through its registers and regulations.