ELTIF Fond
en
Menu
Glossary

Retail investor

A retail investor is an investor who is not classified as a professional client under MiFID II, typically a private individual. Retail investors receive the highest level of protection when buying an ELTIF.

1 min read Updated Expert review not yet completed

Short answerA retail investor is an investor who is not classified as a professional client under MiFID II, typically a private individual. Retail investors receive the highest level of protection when buying an ELTIF.

A retail investor is an investor who is not classified as a professional client under the EU rules on investment services (MiFID II), typically a private individual investing personal savings.

Why it matters

Retail investors receive the highest level of protection. Under ELTIF 2.0, an ELTIF may be offered to a retail investor only after a suitability assessment, and the investor receives a statement on suitability. If the fund's life exceeds 10 years, the distributor must give a clear written alert that the product may not be suitable for investors unable to sustain such a long-term and illiquid commitment. ELTIFs that can be offered to retail investors may also borrow less than funds reserved for professional investors.

What to watch for

Protection rules do not remove investment risk. Read the alerts and documents carefully. See ELTIF for retail investors and suitability assessment.

Primary sources

General information. Not investment advice or a suitability assessment.

Related content

Black and white aerial view of a square in a historic centre

Learn8 min read

ELTIF for retail investors: rules, protections and steps

Since ELTIF 2.0, retail investors can buy ELTIFs without the former EUR 10,000 minimum and 10 % portfolio limit. The seller must carry out a MiFID II suitability assessment, give a suitability statement and a written alert on long life and matching. It suits only long-term investors.
Pen resting on a lined notebook

Articles9 min read

What to check before investing in an ELTIF: 12-point checklist

Before investing in an ELTIF, read the KID, prospectus and statute, confirm the end date and redemption rules, check borrowing, concentration, costs and the manager, test your horizon and reserves, compare alternatives and consider independent advice.
Modern commercial building with a glass and metal facade

Real estate investing7 min read

Commercial real estate: how it earns income and what drives value

Commercial real estate is property used by businesses, such as offices, retail and warehouses. It earns income mainly from leases paid by business tenants, and its value depends on location, tenant quality, lease length and building condition. Funds hold it directly or via property companies.