A distinction is made between direct and indirect real estate investments. In the case of direct real estate investments, the investor builds or buys a residential or commercial property and usually rents it out. In the case of indirect real estate investments, an investor participates in real estate through a separate legal entity (e.g. a fund). The investor does not become the owner, but participates in the performance of the property. The most important indirect investment vehicles for Swiss real estate are real estate funds, real estate shares and real estate investment foundations, whereby only pension funds can invest in the latter.