The mutual fund is ... A mutual investment fund

Pif is a kind of collective investment of funds with subsequent profit. The funds of many depositors are added to a single fund and some assets are acquired on them. They are bonds, depersonalized metal accounts, stocks, deposits, real estate, that is, a standard gentleman's set of financial instruments permitted by law. The activity of the fund's employees is aimed at obtaining maximum profit with the help of funds received under management, in order to increase the assets of the fund and shareholders could get their profit.

Pros of the mutual fund

Start-up capital may be small. Some funds are ready to accept a contribution of one thousand rubles. Independently to study the market it is not necessary. This is already done by specially trained people working in the fund.

How it works

Not every organization, and even more so a private person, can create a mutual fund. This is an activity related to the licensed. The license is issued by the Federal Service responsible for control over the financial markets of the Russian Federation. This body both issues a license and controls the subsequent activities of the mutual fund. The check takes place three years at least once. That's why the fund must conduct all operations correctly and work within the framework of the legislation.

Once a license is obtained, the fund may begin to attract investors (shareholders). It can be both citizens and organizations. Each person can buy shares for a certain amount of money, and this amount comes at the disposal of managers. The fund, with investors' money, can buy securities that are in free circulation and, making such transactions, earn a profit, which leads to an increase in the value of the fund's assets, which means that the value of the units increases.

Pai - what is this?

Investment share is a registered security that records the investor's investing in the fund of a certain amount of funds. In other words, the investor thus fixes his own right to the share of the mutual fund property. Documentary ownership is drawn through a record on the personal account of the depositor, which is opened in the mutual fund registry. The number of shares that the investor will own will most likely be a fractional number.

Change in the value of the unit

The value of shares, like the value of any other asset, is subject to investment risks. The share does not have a nominal price, but with a certain periodicity, its estimated value is calculated. So, open mutual funds calculate the price of the unit every working day (on holidays and weekends the cost is equal to the price for the last working day).

Interval PIF does this on the last day of the interval (the period when you can repay and purchase shares) and the last working day in a month. Closed Mutual Funds calculate the value on the last working day in the month and the day following the last day of filing applications for the purchase of additional shares. All transactions for the purchase / sale of units of this fund are made based on their prices on the last day when applications were accepted.

The value of the units is calculated simply: the price of the net assets of the mutual fund (NAV) is divided by the number of units. Information about them can be viewed in the register of depositors of the fund. The net assets of mutual funds are determined by subtracting the size of the fund's liabilities from its assets (funds held in the fund's deposits and on its accounts).

Guarantee of profitability

Guaranteed yield of mutual funds, as well as other financial instruments, is absent. Everything determines the value of supply and demand for stock assets. And units of investment funds can not give guaranteed yield. Moreover, information about the mutual fund can not be said about guarantees for profitability in the operation of a management company in the future. This is described in more detail in Article 51 of the Federal Law "On Investment Funds". However, the future investor should understand that only low-yielding instruments, such as bank deposits and bonds, can guarantee profit. It is just necessary to minimize risks at the stage of choice, and then the profitability of mutual funds will help to multiply the funds.

How is the profit in the fund formed?

If the investor decided to invest one hundred thousand rubles in the fund, and the value of one share was 4,000 rubles at that moment, he will be able to purchase twenty-five shares. Suppose, after a while, the assets of the fund went up, and the value of one share became equal to six thousand rubles. The value of all the units acquired by the investor in this case became one hundred and fifty thousand rubles. So he was able to earn fifty thousand rubles without taking into account commissions and taxes. That's how each of the shareholders can receive their profits using the units of mutual funds.

Rules for successful investing

The essence of the rules is simple. Invest should be for a long time. UIF is a tool for long-term investment (from two years). Therefore, all invested funds should be quiet for the next two to three years and generate profits. This investment is good because it is not affected by the short-term fluctuations that the stock market is so exposed to. This provides a higher level of profitability.

From here follows the second rule: invest free funds that will not be needed in the near future. Investments for a short period of time are possible and, perhaps, even with a profit. But this approach does not guarantee income from each investment in the mutual fund. Invest funds should be in reliable Mutual Funds, reviews and ratings of which indicate the possibility of making a profit.

Rating of mutual funds

It is not difficult to obtain information on the results of the activity of a particular fund. It is in the public domain. But when you study it is worth taking into account a number of points.

• What is the rating of the management company in terms of the amount of funds raised over the past year? Two years? Three? Studying the rating of mutual funds, it should be understood that the investor invests the funds for an extended period, and it is from the ability of the managing company to dispose of depositors' funds that the security of investment and the success of investment will depend.
• What is the management company's rating on the net asset value? This value indicates how much funds the fund participants are under the management of this Criminal Code. And the higher it is, the higher the popularity of the management company, and therefore, more confidence in it.
• What is the rating of unit investment funds by the amount of funds attracted? It is better to check this figure for the year and for three years.
• What is the Mutual Fund's rating on the value of net assets?
• What is the Mutual Fund's yield rating? It is this rating that attracts depositors' attention in the first place. This indicator builds funds by the amount of profitability, which they were able to reach for some time period. For example, the management of mutual funds of Sberbank led to the fact that the fund "Sberbank - Global Internet" issued a profitability for the year of 49.91%.

How to buy shares?

There is nothing complicated. It is enough to be in the office of the management company or contact its intermediary. The role of an intermediary is often played by investment companies or banks. There you will be asked to fill out and sign the following documents:

• Application for opening a personal account. When the fund management company has several funds, and the investor decided to make deposits not in one fund of this company, then the accounts should be opened for each deposit.
• The application form of the registered person.
• Application for the purchase of investment units.

All documents are drawn up and signed in triplicate, and when working with the intermediary - in four. With the papers, of course, there is a little bit of trouble. After a couple of days, the management company will receive an order to purchase shares with all the details.

Sale of shares

This action is similar to buying. Also, you will have to visit the office of the management company and write a statement, in this case, on repayment. Usually documents require only a passport, but there is a need for information about the number of shares held by the investor, the number of the personal account. Therefore, it is better to go with a full package of documents.

It is worth remembering that the sale and purchase of different mutual funds are carried out in different ways, or rather, at different times. Open funds, which most allow the investor to sell on any of the working days, interval - at the time of opening the interval, closed - when a mutual fund is formed or additional shares are placed. But there may be exceptions.

Sale and purchase transactions with the help of a broker

Operations with shares through a broker have their advantages.

• The purchase of units of closed and interval funds is possible on any day when the exchange operates.
• It is possible to avoid surcharges when buying and discounts when selling units.
• The speed of the investor's application.
• Do not need to get to the office of the management company.

However, there are also disadvantages. Not every mutual fund puts its shares on the stock exchange. "Promstroibank", "Metropol", "Interfin Capital", "Uralsib" - an example of managing companies, represented on the stock exchange. "Sberbank Asset Management", whose mutual funds are represented on the stock exchange, is also one of the largest management companies. These units do not have the highest liquidity and the spread will be high. Instead of surcharges and discounts, there will be commissions to the exchange and the broker (even if they are several times lower), as well as fees, though not always, for the services of the depositary.

Mutual Fund. Banks

Many banks practice the service "Deposit plus mutual fund". Thus, when depositing funds, the depositor puts a portion of it as a deposit in the form of a deposit, while the remainder is bought by shares of mutual investment funds managed by the same bank. Is it good, bad, depends on the work of the management company. After all, with its good activity, the profitability of the units will exceed the interest on the deposit, which, of course, will bring the investor joy. Otherwise, the investor will regret the lost profits that he could receive when he placed all available funds in the form of a deposit under interest.

Taxation

Pay the profit tax will only have to with redemption of units. And this is the only payment that you need to "present" your favorite tax. Profit is easy to calculate - this is the difference between the current value of units and the costs of their purchase. Usually the calculation and retention of this tax from individuals is the responsibility of the management company. This means that the investor will not have to engage in the independent filling of the tax return. For residents, the tax will be 13 percent, for non-residents - 30 percent.

Expenses of the shareholder

There are two main types of commissions practiced in Mutual Funds.

• Commission increasing the value of the unit when buying (premium on purchase). It should not exceed one and a half percent of the estimated value of one share. Some management companies do not charge it at all.
• Commission decreasing the value of the unit when selling (discount on sale). It should not exceed three percent of the estimated cost.

The remuneration of the management company, appraiser, auditor, registrar, depository also relates to the graph costs. But they all lie within a few percent and are taken into account when calculating the value of the units.

Key Players

1. Uralsib. UIFs: Uralsib First, Uralsib Prospective Investments, Uralsib Eurobonds, Uralsib Financial Sector, etc. There have been few positive reviews of Uralsib funds recently, and they are all focused on non-core forums. The management company Uralsib, whose UIFs initially showed very good returns, is now being sharply criticized by investors. Many investors believe that they could have achieved much better profitability results on their own.
2. Mutual Funds VTB: VTB - Eurobond Fund, VTB - Equity Fund, VTB - Balanced Fund, VTB - MICEX Index, VTB - Telecommunications Fund, etc. VTB Funds are different in yield, but a lot of complaints are received On customer service. Therefore, considering VTB investment funds as an investment tool, you need to be prepared for this.
3. Sberbank's main management company is Sberbank Asset Management. Mutual funds: Sberbank - natural resources, Sberbank - financial sector, Sberbank - Europe, Sberbank - America, Sberbank - gold, etc. This UK has proved itself to be reliable, which is not surprising.

A few questions about Mutual Funds

Is it possible to donate shares? Yes, it is possible. It is enough to conclude a standard gift contract in ordinary written form.

Can the units be inherited? Yes, they can, in the general order. The Civil Code of the Russian Federation describes in detail how this is done.

Conclusion

So, UIF is a great way to invest and increase your money. The main thing is to choose a worthy fund. When comparing a mutual fund and a brokerage account as a method of investing a novice investor should stop on the first option. After all, in addition to the advantages described above, there are additional:

• You can invest a small amount of money and get the benefits of the most profitable tools (index portfolio, real estate and others).
• The investor, investing money in mutual funds, the management trusts professionals (in this respect, the fund is similar to trust management).
• Although investing in a unit investment fund does not allow using all the opportunities of the securities market by itself, but the investor frees up his time for other businesses. And this, you must agree, is also a huge plus.

In other words, if the investor does not like to deal with all the wisdoms of the securities market, and you want to invest, then investment mutual funds are precisely the tools that will not only save, but also increase the accumulation.