||Collective investment in the Czech Republic has gone through significant development during past decades and currently plays an important role on financial markets. The amendment of the Act on Collective Investment enabled the creation of property funds, which can be set up as special funds of qualified investor funds. The study starts with the general overview of the Czech collective investment market its structure, history and present. Furthermore, legal norms which determine the conception of property funds are specified. The study draws from the experience of foreign states and mostly focuses on Germany and USA. Property funds already have their own history there. Last but not least, the main aspects of property funds business are analyzed in context of international competitive advantages by analyzing the characteristics of indirect real-estate investments, tax system, development of the local real-estate market and European legislation.