The choice of mutual fund
Posted on Nov 17, 2000 08:15:27 AM
Units of investment funds are becoming increasingly popular form of savings for the Russians. Against other investment products, investment in mutual funds do look fairly simple way of investing because they do not require significant financial investment knowledge. In fact, buying mutual fund shares, the investor should be aware that it depends on market conditions, as well as internal risk management company, which would be nice to know in advance.
The question of how to purchase securities is easily solved. No need to go to market himself and break his head, trying to learn complicated and often highly contradictory rules. Enough to buy a stake in mutual funds. Strictly speaking, mutual funds and are designed to ensure that people can, on the one hand, to invest in stocks, but on the other – “not bother” about the many market difficulties.
Funds are being filmed and the other problem – the problem of overcoming the “price cap” for entering the market. It is clear that the investor-”physics” may simply not have enough money to buy lots of expensive stocks. Mutual funds also offer their shares at quite reasonable prices: the minimum amount of share – 10,000 rubles. You get it, and further investment of your funds is responsible for the management company that has a special license to drive PIFS. It invests in various assets and ensures that ultimately the depositors are not left out in the cold. It is clear that it acts not out of altruistic reasons: if the depositor for one reason or another, “burns,” then it automatically puts the responsibility on my CC. So that its image is undermined. Besides, the more successful she manages it has been entrusted funds, the higher the percentage gets for his work. So all the advantages and disadvantages are there for her.
In most cases, the main argument resorted to by the Criminal Code, seeking to attract customers is to demonstrate growth in share value over time. However, according to analysts, it is impossible to choose a fund or management company on the basis of only data on profitability.
To determine how reliable the Criminal Code, you should know that there are a number of quality indicators that are better than all the numbers will tell whether the company is stable and how carefully she will handle client money. Risks involved in the management company can be divided into external characteristic of the entire industry, and infrastructure related to the stability of the Criminal Code itself and its business partners – a settlement bank, broker, spetsdepozitariya, registrar, appraiser, auditor.
asset, equity, mutual fund, stock, the company, vehicle fund,- How the Mutual Fund
- Glossary Mutual Funds
- The choice of management company
- Investments in mutual funds How to become a shareholder
- Results for mutual fund