among the most accessible and sustainable financial instruments present in the Russian market - mutual funds.They allow anyone who wishes to receive citizen income from investing in certain assets.What is the specific activities of these financial institutions?At what income you can expect when working with mutual funds?
What is UIF?
What is a mutual fund or a mutual fund?This is a special form of investment funds in the order of collective participation of investors.Finance involves the transfer to the trust management of a special organization and the subsequent profit, if the work is successful partners.
Investing in mutual funds is carried out through the purchase of certain shares - "units".At the same time investors are their owners, the management company only provides the necessary financial transactions.
What gives mutual funds?
main purpose for which investors are in mutual funds - profit.Mutual funds allow investors to make even those who do not have significant experience in the field of investment, - the entire volume of the related work takes on the management company.Experts of the organization, relying on the skills and competence are the best options for investment funds that they manage.The management company is working for a percentage of financial transactions carried out by using the equity investors.
legal status of mutual funds
How have the legal status of mutual funds?It may be noted that they are not legal entities.At the same time, those have to be management companies of mutual funds.Mostly, such a difference in the legal status due to the fact that both the subject of legal relations - mutual fund and capital - not to overpay taxes.Listed in the treasury under this scheme of cooperation is subject to only the revenue, which is obtained by investors in the implementation of the units, as well as statutory fees from the proceeds of the Criminal Code as the subject of business.
How do funds
Mutual Fund operates on the basis of internal rules.They fixed the conditions under which investors transfer funds to the management of the management company.The relevant organization must have a license, confirming their right to manage the property, which is owned by mutual funds.This document is issued by the Federal Commission for the Securities Market.A management company may establish several mutual funds.
Once the corresponding structure will receive a license from the state, it must conclude several agreements - with the depositary, registrar, an independent appraiser and auditor.The rules that we have said above should be made to the Federal Securities Commission registers.Also registered in relevant state bodies to be a special document - the issue prospectus of shares.As soon as the management company will settle all formalities, it may start to financial activities.
first phase of the activity of the Criminal Code - initial public offering of shares.In this direction the work of the Criminal Code is to collect the minimum amount of capital.If this was not possible, the mutual fund shall be liquidated and the money - transferred to depositors.
control over the work of the funds
activities of investment funds is subject to state control.The main body, which it carries out, - the Federal Securities Commission.Thus, the legislator in the development of measures regulating the activities of mutual funds were established some rules related investment structures must comply.
example, assets held by mutual funds should be managed by one company, and stored - in the other.At the legislative level, set standards, involving a detailed disclosure of investments.Reports of mutual funds also involve a high degree of detail.
Guaranteed whether income?
Specificity of activity of mutual funds does not guarantee income for investors.The company, which manages mutual investment fund is obliged to redeem the shares as soon as the order requires the investor, but the legal requirements relating to profitability in respect of the structures is not established.That is, despite the fact that mutual funds are positioned as financial instruments for investors who do not have a large professional experience of investing, it is assumed that the owners of capital are aware of all the related market risks.
essence shares
Let us consider what the investment shares.When the investor transfers funds to the mutual fund, he actually gets a stake in the organization.Thus, the investment share of a mutual fund investment - a personalized security which indicates that its owner is among the owners of the property mutual fund.This citizen is entitled to expect that the Criminal Code is properly managed investment fund.He also has the right to compensation if the contract for asset management will be discontinued.
Pai does not have the minimum value of the cost.It is expressed in monetary valuation price of the net assets of the fund.That is the cost of one unit taken a multiple of the total amount of cash the mutual fund divided by the number of shares.Price respective shares varies according to the investment performance.Pai also can not be considered equity type of securities, like stocks.At the same time the appropriate type of financial instruments can not be derived from the shares.The total number of shares in the mutual fund legislation is not limited.
Types of funds
consider what are the mutual funds.There are several criteria for their classification.One of the most common, mutual funds can be divided into three types: open, closed, as well as the interval.What is their specificity?
open-end mutual fund - a financial institution that is the most common in the appropriate category.Their main feature - free buying and selling of shares.The amount of capital, and the number of contributors is not restricted.For this type of mutual funds is characterized by investing in assets that are highly liquid.
Private equity funds are characterized by the fact that selling the resulting shares in the establishment of the fund.These structures do not carry out the redemption of units, not counting precedents when the investor claims against the rules of the Criminal Code.Matching funds are formed, usually for a fixed term, which is negotiated with investors in advance.Closed-end investment fund - structure, which is often the industry specialization.For example, its activities may be related to the real estate market or innovation.However, for example, "The first mutual fund startups" open.Though its industry specialization - just the same innovation.There
interval mutual funds.The peculiarity of their work is that the implementation of the units and their redemption is carried out at fixed intervals.This interval funds work mainly in shares.Therefore, the potential of such mutual funds (many reviews contributors confirm this) can be more profitable than, for example, open mutual funds.
There is another common criterion for the classification of mutual funds - investment sphere.Thus, the "first mutual fund start-ups", as we noted above, operates in the field of innovation.But there are also mutual funds leading the activity in the bond market, mortgage, real products in the industry.
example, funds operating in the segment of bond funds investing primarily in related securities issued by the state, corporations, working with bank deposits and currency.Their assets are not normally formed by shares.Mutual funds attributable to this category, many analysts viewed as not very profitable, but it is very reliable, due to the nature of bonds, involving compulsory payment of depositors of the dividends of the issuer.
In turn, mutual funds, characterized by risky investment strategies - those who work with the shares.But at the same time the yield they could be incomparably higher than in funds that invest the money in bonds.It may be noted that within this category of mutual funds have an additional reason for the classification of establishments.So, there are funds that specialize in investing in stocks of large companies - "blue chips", and there are those who prefer to invest in the assets of newcomers.
there are mixed mutual funds.They are difficult to be described as operating in a particular segment.At the same time, many of them combine the best qualities of funds specializing in stocks, namely high yield and at the same time the characteristics of mutual funds invested in bonds, in particular stability.Investing in such institutions is recommended for investors, for which the relevant financial market is completely new.
functions of mutual funds
is useful to consider what features are characteristic of mutual funds.They can be classified in the social and economic.The functions of the first type are:
- provide citizens with an opportunity to earn in addition to the usual sources of income - wages, deposits, even if they do not have specialized knowledge in the field of investment;
- promoting financial education of the population (the investor eventually begins to understand the market forces affecting the success of investments);
- formation of jobs for the financiers, as well as related professionals with their profile, lawyers, programmers, secretaries, sales managers.
include basic economic functions of mutual funds:
- increase in the capitalization of various business sectors, the financial market, which ultimately contributes to the growth of the economy;
- facilitate entrepreneurial initiatives - both direct (encouraging financiers with experience opening their businesses in the form of management company) and indirect (the formation of the depositors on making plants by improving knowledge and skills in the field of investment);
- provide additional tax revenues to budgets of different levels - at the expense of deductions from the income of investors, as well as fees to the Criminal Code, under the law.
We now consider the advantages and disadvantages of investing in mutual funds.
Advantages and disadvantages of investments in funds
Let's start with the benefits of working with mutual funds of depositors.The main advantage that has any mutual fund, that the capital is controlled by experienced experts.If this criterion is not met, the management company is simply not obtain a license from the Federal Securities Commission.This agency places demands on professional qualification holders of the Criminal Code, in the prescribed manner certifies them.Mutual funds typically provides investors with experience, confident in their abilities and skills.
Investing in the appropriate type of funds are very accessible.The minimum amount of investment in most mutual funds - about 2-3 thousand. Rub., Sometimes even less.Expected return on it may be compared with a profit from the placement of deposits with banks on the terms established for very large contributions - from a few hundred thousand.
Investing in mutual fund on the level of security in terms of a number of criteria comparable to the same bank deposits, which are characterized by very high security state.Control over the activities of the Fund by a separate agency, and components of the activity of mutual funds procedures assume a very strict monitoring.Hard state supervision is complemented by legislative requirements, such as those that involve the obligation of the Criminal Code to place funds in a separate depository.
Among the significant advantages of mutual funds - a soft taxation.Current operations are not subject to taxes.The payment of the necessary taxes required only when the sale of shares by the investor.In turn, the terms of the Criminal Code on the commissions usually quite acceptable for investors - is taken, usually 3-4% of the turnover of capital.
Have mutual funds are also disadvantages.First of all, a mutual fund can not guarantee profits.This success of the company in the past just does not prejudge the results of a high probability of recurrence of investment.Often, promoted and popular mutual fund, and quite deservedly received such status, chooses not the most optimal investment strategy, with the result that investors are left with nothing.It may also be due to the new market conditions.Moreover, even if the activities of the Criminal Code is unprofitable, the customer nevertheless have to pay for her services through commission payments.
Among notable disadvantages of mutual funds - a relatively low rate of withdrawal of funds investor.As a rule, investors have to wait for cashing out funds for about a week.At the same time he may be costs associated with the need to make specific investment certificates.
experts about mutual funds
What are experts' opinions on the activities of Russian mutual funds?Despite these shortcomings, analysts generally include mutual funds to reliable, transparent and accessible investment instruments.Experts note that for the activities of investment funds characterized by a very high degree of openness, not only due to legal requirements, but also institutions and customer data.
Most importantly, experts say, that the management of the mutual funds is carried out by professionals.There are financial instruments, suggesting that profitability will depend directly on the actions of investors.In the case of mutual funds, they can entrust their capital to skilled people.
Experts note that investors generally rely on mutual funds.For example, after the crisis of 2008-2009, when there was an expected outflow of investors from investment funds, many citizens as soon as possible began to return to the interaction with the funds.Dynamics of investment in many mutual funds exceeded the figures fixed before the crisis.
How much can you earn on mutual funds?
What can be the expected value of profits from investments in mutual funds?As we noted above, funds are divided into several categories - some of the desire to invest in the shares of fast-growing businesses, may be more highly profitable, others that prefer to invest in "blue chips" provide less profit.In the first case, the probability that the investor is left with nothing, of course, higher.
extremely important as a qualified approach to the issues of investment management company.Mutual funds, which are open by experienced players in the market, as a rule, more profitable and more stable than those based newcomers - despite the fact that their qualification has strict requirements on the level of state control.
In open mutual funds specializing in, for example, on bonds, the average yield - 10-12% per annum.Funds that invest in stocks, can provide more profit - about 20%, sometimes - more.Closed mutual funds in terms of profitability took a middle position between them."Mutual fund start-ups," according to some public data, it recorded a profit of several tens of percent per annum.But it depends on how the underlying asset increases of the mutual fund - the capital of innovation companies.Some mutual funds Sberbank, according to public data have yields of more than 30% per annum.
Experts in the field of financial markets recommended to work with several mutual funds, thereby diversifying investments.Potentially, it could also increase profits.It makes sense, analysts say, to compare mutual funds largest commissions and other expenses not directly related to the receipt of investment proceeds.You can also pay attention to the characteristics of the Criminal Code in terms of the founders.If the management company opened a major player in the market, as is the case with mutual funds Sberbank, its reliability is higher than that of the firms have recently appeared in the corresponding segment.Thus, the investor is optimal for an integrated approach to assessing the prospects of cooperation with this or that fund.
prospects of mutual funds
How promising can be considered a financial instrument such as mutual funds?
