Become an investor in a mutual Fund even the man who was never interested in the principles of financial markets.
Bang — the United funds group of persons placed at the disposal of professionals, employees of the management company. UK invests the collected money in financial instruments, trying to get the maximum profit.
How to invest in mutual funds?
To invest in this financial instrument, it is necessary to buy shares — registered non-documentary securities confirming the right to a share of the Fund’s assets. They not only sell to the management company, but also on the stock exchange, banks, agents, online through the website and the portal “public Services”.
The unit price is constantly changing. The investor’s profit constitutes the difference between cost at purchase and at sale. The latter, incidentally, is not necessarily possible at any time.
Buying shares in a closed Fund, you will be able to receive income only at the end of its existence.
If the interval Fund (IUIF), buying and selling rights to shares is carried out at certain times each year.
When the open mutual Fund (open-end), the management company is engaged in the sale and redemption of shares during the whole working time. The information about the change in the value of shares posted on the website of UK and is updated daily.
Between the type of mutual Fund and its investment strategy usually there is a direct link: an open form involves investments in the most liquid assets, while a closed work with a high-risk instruments that can provide maximum profit.
How much money is required to participate in a collective investment? Start looking at available free amount of several tens of thousands of virtually any.
Keep in mind that at the time of purchase, you may have to make the actual share price and a premium (no more than 5%). The size of this overhead is correlated with the size of the invested sum.
There is still management fee — its amount is determined as a fixed percentage of the average net asset value of the Fund and ranges.
At the time of sale will be charged a last fee (“discount”); it depends on the period of ownership of the shares. The longer the duration, the less the discount.
The repayment of Pai
For sale share in the total portfolio of the Fund should:
- submit an application to the UK;
- to specify the details of the account to which to transfer the funds.
Satisfy the request within three days, the money transferred to the account within ten days.
The standards used by UK
All the principles of UK are contained in one document — the Rules of trust management.
The rules contain information on:
- about the types of assets that may acquire the company;
- about its main investment strategies;
- about protecting the interests of shareholders etc.
The company must also meet the requirements that they present regulatory structure of Bank of Russia. The formation of mutual Funds and their disposal is subject to compulsory licensing.
To check up, whether legitimate activities of selected UK, will help the public register of licences of management companies. It is published on the website of the CBR.
The tax side of things
If you hold shares for more than three years, and the income did not exceed 3 per million virtually any year, pay income tax is not necessary. In other cases, it will be 13%.
Tax on profit from growth in the value of assets do not pay.
As a tax agent acts as a management company.
Profitable this form of investment?
Buying units, you get the chance to gain far more than on interest from ordinary Deposit — the estimated yield by investing in units of funds is stable 10-15%. But the income is not guaranteed. It happens that the management company works in the negative, and investors are losing part of the invested money.
The state Deposit insurance system, note, mutual Funds are not covered.
In case of bankruptcy of UK Fund or passes under the control of another company, or ceases to exist (and the assets of the Fund transferred to a cash equivalent, so that it is divided between investors, shareholders).
So, the conclusion is simple: invest in money funds, without which you will be able to do even in the most difficult circumstances. But to be safe try to find a mutual Fund, the share price has remained relatively high over the last 3-5 years. Also be sure to compare the fee established in different funds.