It is time to look for new financial horizons as soon as Investor understands that classical bank products (deposits) cannot satisfy their requests anymore. The next financial competence stage is the purchase of the investment fund shares. Investment funds’ primary task is to increase the value of assets under management. What is more, the capital is pooled from different individuals and institutions, thus the task is not dependent on terms and the equity amount of a single investor. Income produced by investment managers is reinvested in the assets of the fund, which results in increasing the value of investors’ holdings. Investment manager’s compensation is heavily dependent on the total return of the fund, therefore he is directly interested in the growth of the value of the assets of the fund under management and in achievinghigh yield while maintaining required risk profile.
Advantages of investment funds
- Allocation of clients’ risk capital to the fund means they entrust the management of their assets to the licensed participants of the stock market whose principal activity is day-to-day direct management of the assets.
- Investment funds are important participants of the stock market and very often have better business offers than independent investors do.
- Both private clients and legal entities can purchase securities of the investment funds.
Investment funds:
Investment certificate: 1 070.25 UAH
NAV: 1 045 637.35 UAH
as of 30.01.2012
