TFI — What is a Polish Investment Fund Company

What is TFI?

TFI (Towarzystwo Funduszy Inwestycyjnych) is a Polish company that creates and manages investment funds. TFI collects money from investors, pools it into funds and invests according to a specific strategy.

In Poland, dozens of TFI operate, including PKO TFI, Pekao TFI, NN Investment Partners, and Generali Investments.

How does TFI work?

1. TFI creates a fund (e.g., "Polish Stock Fund")
2. Investors buy participation units of the fund
3. The manager (fund manager) invests the collected money
4. The unit value rises or falls depending on investment performance
5. The investor earns by selling units at a higher price than purchased

Types of TFI funds

FIO (Open Investment Fund)

The most popular. Anyone can buy and sell units at any time. Types:

• Equity funds — invest mainly in stocks
• Bond funds — invest in bonds
• Mixed funds — mix of stocks and bonds
• Money market funds — short-term debt instruments (low risk)

SFIO (Specialized Open Investment Fund)

Higher minimum entry, more advanced strategies.

FIZ (Closed Investment Fund)

Limited number of certificates. Less liquid but can invest in unconventional assets (real estate, private equity).

Costs

Management fee

Charged annually, from 0.5% (money market funds) to 3.5% (equity funds). This is the biggest cost — you pay regardless of performance.

Manipulation fee (distribution fee)

When buying or selling units: 0–5%. More and more funds offer them online without fees.

Success fee

Some TFI charge an additional fee when the fund earns above the benchmark.

Is TFI a good choice?

Advantages: convenience, professional management, access to various markets.

Disadvantages: high fees, most funds underperform the index. According to SPIVA data, over 80% of Polish equity funds failed to beat the WIG over a 10-year period.

For most investors, a cheap ETF will be a better solution — lower fees and statistically better performance.

How can Freenance help

Freenance allows you to add TFI funds to your portfolio and compare their performance with ETFs and indices. You can see if your actively managed fund actually earns more than a simple ETF — after fees.

👉 Compare funds in Freenance — freenance.io