SICAV and FCP: what are the differences? The complete comparison

SICAV and FCP: two legal structures with the same goal

SICAV and FCP both belong to the OPC category (collective investment undertakings). Their common point is simple: they let many savers pool their money to invest in a portfolio managed by an asset management company authorized by the AMF (French financial markets regulator).

What sets them apart is their legal structure. And that difference, while very real from a legal standpoint, has little practical impact for most retail investors. Here’s why.

What is a SICAV?

A SICAV (Société d'Investissement à Capital Variable) is a public limited company whose sole purpose is to manage a portfolio of securities. It has its own legal personality, governance bodies (board of directors or management board, general meeting), and issues shares.

When you buy into a SICAV, you are not buying “units in a fund.” You are buying shares in a company. You become a shareholder, with the rights attached to that status: voting rights at the general meeting, the right to information, and even the theoretical possibility of standing for the board of directors.

Its capital is said to be “variable” because it changes continuously depending on subscriptions and redemptions: new shares are created whenever an investor enters, and canceled whenever one exits.

Full definition of a SICAV

What is an FCP?

An FCP (Fonds Commun de Placement) is a co-ownership of securities. It has no separate legal personality: the asset management company acts in its name and in the exclusive interest of the unit holders.

By buying FCP units, you are not a shareholder in a company. You are a unit holder in a co-ownership structure. You have no voting rights over management decisions, and the asset management company makes all investment decisions on your behalf.

Even so, your interests are protected by regulation, AMF oversight, the presence of a separate custodian, and the review of the statutory auditor.

What SICAV and FCP have in common

Despite their legal differences, SICAVs and FCPs work in almost the same way from an investor’s point of view. Understanding these similarities is just as important as understanding their differences.

Net asset value: the same mechanism

In both cases, the purchase or sale price is determined by the net asset value (NAV), calculated by dividing the total value of the portfolio’s assets by the number of securities (shares or units) outstanding. This value is calculated at a frequency defined in the fund documentation, most often daily for retail funds.

In both cases, the order is executed at an unknown price: you do not know the exact price when you place the order. The applicable price is the NAV calculated after the cut-off time for order aggregation.

The same regulatory protections

SICAVs and FCPs are both approved and supervised by the AMF (French financial markets regulator). Their articles of association or rules, as well as their information documents, must be approved by the authority. A custodian separate from the asset management company must be appointed to safeguard the fund’s assets and ensure that transactions are properly carried out. A statutory auditor reviews the annual accounts.

These protections apply in the same way whether the vehicle is a SICAV or an FCP. AMF approval does not guarantee performance, but it does guarantee a framework of organization, transparency, and oversight.

The same strategies, the same fees, the same wrappers

Fund categories (equity, bond, money market, diversified) exist for both structures. Fees (entry fees, ongoing charges, and any performance fee) follow the same logic. Both can be held in a securities account, in a PEA if eligible, or in assurance-vie as unit-linked investments.

In practice, for a retail saver, the choice between a SICAV and an FCP is rarely made on the basis of the legal structure. Strategy, risk level, fees, and time horizon are what drive the decision.

The differences that really matter

Voting rights: an important difference in theory

Voting rights are the most commonly cited distinction. As a SICAV shareholder, you can attend general meetings, vote on certain decisions, and theoretically stand for the board of directors.

In practice, retail SICAVs have thousands or tens of thousands of shareholders, and attendance at general meetings is very low. This voting right makes more sense in the context of employee savings, with SICAVAS (variable-capital investment companies with employee shareholding), where employee-shareholders have a direct interest in taking part in the fund’s governance.

Creation flexibility: a structural advantage for the FCP

For asset management companies, the difference is much more significant. Creating an FCP is faster, more flexible, and less expensive than creating a SICAV. An FCP has no legal minimum capital requirement, no articles of association to draft, and no board of directors to set up.

That is the main reason the FCP is by far the dominant structure in France, accounting for around 98% of OPCs. The vast majority of funds you come across at your bank, on an investment platform, or in assurance-vie are FCPs.

Specialized funds: territory reserved for the FCP

Some types of funds exist only in FCP form. That is the case for private equity funds (FCPR, FCPI, FIP), employee savings funds (FCPE), and alternative fund-of-funds structures. These specialized vehicles take advantage of the FCP’s legal flexibility to implement more complex investment strategies or stricter access conditions.

SICAV and FCP - Key similarities and differences

SICAV or FCP: how do you choose?

In the vast majority of cases, that is not really the question. You do not choose “a SICAV” or “an FCP”: you choose a fund, with a strategy, a risk level, fees, and a time horizon. The legal structure is only a secondary factor.

What really drives the choice

Before looking at whether a fund is a SICAV or an FCP, ask the right questions. What is the strategy? Equity, bond, money market, diversified? Which geographic area, which sector? What is the recommended investment horizon, and does it fit your needs? What risk level is shown in the KID’s summary risk indicator? And what is the total fee level, since its cumulative impact on a long-term investment is decisive?

When the structure can make a difference

There are cases where the SICAV/FCP distinction can have a real impact. In the context of employee savings, employees who invest in SICAVAS can exercise concrete shareholder rights over the fund’s management. In certain institutional structures or specific negotiated arrangements, the legal personality of a SICAV can offer possibilities that an FCP does not.

For a typical retail investor, these cases remain rare. The key is to read the Key Information Document (KID) and the prospectus carefully, whatever the type of vehicle.

What to remember before investing

The risk of capital loss applies in both cases

Whether it is a SICAV or an FCP, almost all securities funds carry a risk of capital loss. The net asset value can fall, and there is no guarantee that you will recover your full initial investment. This risk varies greatly depending on the category (very low for a money market fund, higher for an equity fund invested in volatile markets).

Complete guide to the risks of a SICAV

Approval does not guarantee performance

AMF approval is a necessary but not sufficient condition when choosing a fund. It guarantees the regulatory framework, the compliance of the documentation, and supervision. It says nothing about the quality of management, the relevance of the strategy, or future performance. Past performance, as stated in the documents, is not indicative of future results.

Always read the KID before subscribing

Whether it is a SICAV or an FCP, the Key Information Document (KID) is the first document to read. In three standardized pages, it summarizes the fund’s objective, the recommended horizon, the risk indicator, indicative performance scenarios, and total costs. It is designed to make product comparison easier and must be provided before any subscription.

How do you invest in a SICAV?