One way of augmenting their wealth (that is the financial condition) - investing part for profit.Today we know a lot of tools in this process, and one of the most popular - Mutual Funds.They are competent for the financial management of cash resources and are able to bring considerable benefits to their shareholders, increase their investment.This, as many know, collective education, combining means tens, hundreds or even millions of shareholders in the general fund, which is transferred under the control of the Management Company.It was she who does most of the work - to invest in securities and other assets, taking part of the profits (commission) itself, and the rest of the passing depositors.To get it, you need to buy a share.This paper (noun), which confirms your right to part of the assets of the fund, which means that its profits.
went from the concept?In English the word "share" - is part of the "piece of cake", which reveals exactly the value in the financial sector.You buy a piece of cake (to invest in the fund), and then reap the rewards of this purchase, profiting from its cost (the amount of your investment).The price it will constantly change.The investment unit - is not a fixed value, and the relative.It can change the day, depending on the fluctuations in the value of the securities that are included in the Fund's assets.Your part will be defined as the share (in proportion to what% of the funds of the total number have you).
addition to that with the acquisition of the unit you are entitled to part of the property fund and a certain share of the profits from the sale of its assets, you have other possibilities.For example, you can sell, donate or bequeath the investment share to someone from family members, friends, acquaintances or colleagues.The fact that the transfer is confirmed extract from the register of the shareholder, which is issued by the registrar.
evaluate the work of the fund may be on the way in which changes the value of the unit.Of course, if it mainly grows, the management company operates competently capital fund.This is very important especially in the long term.After all, the owner of the unit does not receive any real money, it is still a party to the fund.Benefit (or loss), he will not get until it sells.In this case the cash consideration of the unit - the difference between the funds invested in the fund, and those that were obtained after the sale.
How to determine how much money the fund you own at the moment of his work?Very simple.During the initial introduction of a certain amount to the account of the shareholder is recorded the number of shares, which is calculated by dividing the sum of its investments in the total value of the fund (which may be a fractional number, such as 542.74 a share).In the case of sale, this value is multiplied by the cost of one unit at a time, resulting in a sum of money to which you are entitled.
So share - a reasonable alternative to traditional deposits and accumulation.With proper choice of mutual fund and competent its management company you can dramatically multiply their investments and achieve the desired results, save up for an apartment, a car or other purposes.