Investments in mutual funds. PIF - what is it really? What is interesting about PIF
Imagine what impression the interlocutor will make on a person who, talking about himself, will say: “ I make money by investing in securities". I think most people will look at him as an alien.
Movies and the media have created the impression that all stock and bond people are very serious and successful, have a lot of money and are almost geniuses. If you don't believe me, just turn on the RBK channel. From analysts talking about stocks, indices, etc. just exudes professionalism.
But, in fact, to earn on valuable papers Ah, anyone can do it, and you don't have to spend half your life studying the laws of the stock market. To do this, you can hire a professional manager who will buy stocks and bonds for you and try to provide you with the maximum income.
In order for anyone to try to make money on securities with the help of a manager, starting with a minimum amount (you can find funds with a unit value of 300-500 rubles), mutual funds (Unit Investment Funds) were created.
What is a PIF?
PIF (Unit Investment Fund) is a type of investment trust management. This is a pool of collective investments, where the investor buys a share in the property of the fund.
The fund is created by a management company that has the appropriate license. Investors invest in the fund and with their funds the management company buys assets (stocks, bonds, etc.)
How can this be explained in simple terms?
Suppose there are 3 investors: Sasha, Petya and Vasya. They have money to invest, but they don't have the time, experience, or knowledge to invest in stocks, bonds, and other assets on their own.
To do this, they hire a management company that will deal with the purchase and sale of assets in order to make a profit. For this, investors will pay remuneration to managers.
Let's say Sasha has 500,000 rubles, Petya has 100,000 rubles, and Vasya has 10,000 rubles, a total of 610,000 rubles. They pool their money and create a fund. After investing, they receive shares, in proportion to their investments, which certify their share in the fund. If we assume that a share is worth 1,000 rubles, then Sasha will receive 500 shares, Petya 100 shares, and Vasya 10 shares, for a total of 610.
With the invested funds, the management company buys assets, for example, shares Russian companies. Now suppose that after some time the value of the purchased shares increased, which means that the fund's assets also increased, for example, to 800,000 rubles.
After the rise in price of the shares, the share will no longer cost 1,000 rubles, but 800,000 / 610 = 1,311 rubles. So, if Petya decides to leave the fund, then he will receive 1,311 * 100 = 131,100 rubles. And he invested 100,000 rubles, which means that his profit will be 31,100 rubles or 31.1%.
Types of mutual funds
Mutual funds are divided into bonds, stocks, real estate and mixed funds.
- Bond fund.
The yield of such funds in the short term is not high, but in the long term they often show higher returns than equity mutual funds.
From the name it is clear that in this case the money is invested in bonds. The yield of these funds is comparable to bank deposits. But compared to banks, mutual funds have one plus. If you withdraw a deposit from a bank before the end of the investment period, you lose most of the profit. You can withdraw money from the fund at any time without losing interest.
Investing in bond funds entails the lowest risks, but also provides high yield.
- Equity fund.
Investors who want to get higher returns from investing money most often choose this type of fund. Equity mutual funds invest in shares of companies. They buy stocks that they think will rise in price soon and sell stocks that have reached their peak value.
In general, the stock market itself is the most risky, therefore, the main property of these mutual funds, along with high potential return, is a high risk.
- Mixed fund (mutual investment fund of mixed investments).
To ensure maximum profitability and minimum risks, mixed mutual funds use the principle of diversification. They invest in a wide variety of assets. These can be stocks, bonds, real estate, works of art, etc. They may even invest in other mutual funds.
- Venture funds.
These mutual funds make bets on the riskiest stocks. With this type of investment, about 2/3 of the fund's funds simply burn out. And only 1/3 makes a profit. But the profit is such that it more than covers all the losses.
- Real estate funds.
As the name implies, these mutual funds invest in real estate. This may be the construction of facilities from scratch and the subsequent sale or lease. It can also be the purchase of real estate and its subsequent development (repair, redevelopment, etc.) for the purpose of selling or renting.
A feature of this type of fund is that real estate mutual funds are closed. That is, investors invest money one-time and will not be able to withdraw funds before the end of the investment period. Money is usually invested for 3-5 years.
Organizational division of funds:
- Open mutual funds. A feature of this type of funds is that investors can buy or sell units at any time. The transaction is carried out within 1-3 business days. Suitable for owners of medium capital.
- Interval mutual funds. You can buy and sell shares only at certain time intervals, which are also called windows. Such windows are usually opened once a quarter or once every six months.
- Closed mutual funds. Such funds are suitable for long-term investments. An example of such a fund is a real estate mutual fund. Units are purchased once and cannot be sold until the end of the investment period.
Advantages and disadvantages.
Pros:
- Convenient amount for investment. Those who want to start investing in the stock market with minimum amounts, can find mutual funds with a minimum unit value of 300-500 rubles. Wealthy people can invest amounts in the millions.
- Fast withdrawal of money. Investors can withdraw funds from mutual funds within 1-3 business days.
- No loss in unplanned withdrawal. Unlike banks, when withdrawing money from open mutual funds, you do not lose the accumulated interest.
- High yield. Mixed mutual funds and equity funds can provide high returns of over 50% per annum.
- Management professionalism. In large funds, managers are professionals of the highest level. Indeed, in order to provide income to its clients, the management company is forced to hire only the best specialists.
- State control over mutual funds. The activities of mutual investment funds are controlled by the state, so fraud on the part of the management company is excluded.
- Tax agent. All taxes that the investor must pay when receiving money from investing in mutual funds, the management company pays for it. That is, a person will not need to file a tax return, the company will do it for him.
Minuses.
- Risks. This type of investment comes with risks. The value of a share may decrease due to poor fund management.
- The difficulty of choosing a mutual fund. It will be difficult for a beginner to choose unit trust for an investment that is most likely to bring him a profit.
- Manager commission. For their work in managing your funds, the company will take a commission from you. The fee ranges from 0.5% to 5%.
Who is investing in mutual funds suitable for?
Let's think about what kind of person is suitable for investing in mutual funds?
- No loans and no money problems. If a person has financial problems, then you should not invest in funds. And even more so, you should not take loans in order to invest.
- There is free money. One of the rules of investing should always be kept in mind: Don't invest an amount you can't afford to lose».
- Other ways of investing are used. Don't invest your entire portfolio in mutual funds. It is recommended to invest in mutual funds no more than 40% of your portfolio.
- Control over emotions. Whatever happens, your actions should be guided by reason, not emotions. You need to weigh each step, and not act impulsively.
- Interest in the stock market. You must like what you are doing. Only in this way will you be able to increase your professionalism and your income from this activity.
Real return on mutual funds.
If you think that all managers have the motivation to show the maximum profitability, then you are mistaken. Most managers have the task of simply beating the index against which the performance of their fund is compared. If a mutual fund invests in shares of Russian companies, then the results are compared with the RTS index. This is one of the reasons for the low profitability of investing in mutual funds.
The average yield of bond mutual funds is usually around 8-12% per annum. The yield of the most successful funds exceeds 50% per annum. But, you can see that many mutual funds bring losses to their customers.
How to choose a mutual fund?
Risk.
You need to understand that the higher the potential return of the fund, the higher your risks will be. So figure out how much you're willing to risk.
Term.
If you may need money in the near future, it is better to choose open funds. If you decide to make a long-term investment, then first of all look at the reliability of the mutual fund and its profitability.
Yield.
Under the law, funds cannot promise you a profit. All you can do is look at the fund's past performance and compare it to other similar mutual funds. But keep in mind that one year cannot be considered as a reliable indicator.
Sum.
If you are a beginner and decide to start with a small amount, then look for such funds with a minimum value of one share.
To date, the largest and most reliable mutual investment funds are: Sberbank, Raiffeisen, Alfa and Uralsib.
How is the investment process?
In order to buy a share in one of the funds, you need to come to the office of the management company or agent company and submit an application. To apply, you will need a passport and money to buy a share. If you plan to pay for the purchase of a share non-cash, then you only need a passport.
If you decide to invest in a mutual fund of Sberbank or another bank, then you will need to come to any of the branches of this bank to purchase a share.
It is recommended that you familiarize yourself in advance with the documentation and conditions for investing in a mutual fund of this management company on its website. Feel free to call this company and ask your questions to the consultant.
Don't forget that investment income is taxed at 13%.
20Apr
Hello! In this article, we will tell you all about the features of mutual funds.
Today you will learn:
- What is the return on mutual funds?
- How to open a mutual fund;
- What is the best way to invest in mutual funds.
What are investment funds
Most of us are accustomed to deposits at a small percentage. Someone is holding own funds Houses. Not so long ago, new ones appeared. They compete with banks and are gaining momentum. Their name is .
These organizations exist for the purposes of collective means of physical and even. They allow those who do not have knowledge in the field to get a decent income.
You can open a fund in the following areas:
- Share (unites shareholders of capital);
- Mutual (same as share, only outside the Russian Federation);
- Hedge (available to a limited circle of wealthy individuals).
The whole point of the existence of funds is to make a profit on the joint capital. Each member brings money, which is combined with the funds of other members. Further, the entire amount is invested, for example, in shares. As a result of completed transactions, a certain income does not appear, which is further distributed among equity holders.
At the head of such funds are experienced traders or other professionals who know how to properly manage the money of investors. Since the amount at stake is large (including all shareholders), the income can turn out to be decent.
More about mutual funds
As you already understood, PIF is an abbreviation for the word "mutual funds". Means this concept a certain organization, or rather, a property complex, which, under the leadership of a management company, earns profit for its participants.
The money that new investors bring in is used to buy shares. Share means a share of the assets of the entire fund.
Example: one share costs 5000 rubles. You can purchase 10 shares and transfer 50,000 rubles to the fund's account.
When carrying out some manipulations, the value of the share increases during the agreed period. The owner of his share can get it back (redeemed) with a premium. This is the foundation's process.
Mutual funds have been developed for more convenient. One person, besides not possessing a large amount or wide knowledge, can earn little or lose everything.
At the same time, the funds employ several highly qualified specialists who manage money competently and earn interest.
Who can become a shareholder
Based on the knowledge in the field of investment that shareholders have, funds can be divided into:
- Association of qualified professionals;
- Ordinary investors.
If you have read a lot of literature about investment methods, have rich experience in investing your own money in various projects, stock or, then feel free to join a fund for professionals. Here, an important factor is the profitability of your transactions. A large percentage of winnings will only be at hand.
For those who are used to keeping money on a regular deposit and do not understand deeply financial matters, contacting a conventional mutual fund is the most suitable option.
This is more than 90% of Russians who are not particularly interested in profitable ways of investing, but who want to increase equity in a new way for them. And due to the fact that the interest on bank deposits is completely unprofitable, many have become interested in mutual funds.
Types of mutual funds
There are three main types of mutual funds, different in terms of accessibility for investors:
- Open (available to everyone);
- Interval (have restrictions on the purchase and sale of shares);
- Closed (for "chosen ones").
outdoor view- these are funds that anyone can join if they have minimum contribution. The amount of the contribution to them is minimal and can be several hundred rubles.
An important feature is that you can buy or sell a share on a convenient weekday. If you want to become a participant on Wednesday, no one will forbid you. You wished to sell your share on Friday, no one limits you either.
interval variety a little more complicated. Payments of shares or the admission of new shareholders are carried out only a few times a year. It happens 2-4 times, but not less than 1. The period of purchase and sale lasts for half a month, in which anyone can withdraw from the fund or purchase a new share.
Closed funds include the most complex structure, they are not available to everyone. Here, the restrictions concern, for the most part, the amount of the share. It can be in the hundreds of thousands or millions.
Funds invest in large projects, construction residential complexes. Since the investment objects themselves are quite solid and are not cheap, the requirements for investors are high.
What do mutual funds invest in?
There are many ways to earn money that are used by investment funds.
The most common mutual funds:
- foreign exchange market;
- bonds;
- shares;
- mixed;
- real estate;
- index;
- direct investments;
- goods;
- venture;
- rental;
- hedge;
- loans;
- artistic values;
- funds.
The names speak for themselves. Investment instruments can be securities, currency, real estate, projects, etc. Everything that can bring income, fund holders try to use for profit.
Index funds invest their shareholders in stock market indices. They are RTS, MICEX and others. Venture mutual funds invest in very risky projects that threaten to lose the funds of shareholders. However, if the investment still brings income, then it can bring several hundred percent of the profit.
There is also . These are organizations that are just entering the market and need development, an influx of additional funds. Shareholders' money goes to the promotion of such companies, which in the future can bring good profits.
Correspondence of forms and types of funds
We reviewed mutual funds in terms of accessibility for customers and investment methods. Now let's combine this data.
Open and interval funds include:
- Equity funds;
- bond funds;
- Mixed.
According to the regulatory framework, the methods of investing the two above-mentioned funds are made only in highly liquid assets. At the same time, government bonds, which have practically no risk, make up the majority.
For example, all funds of shareholders can be divided into two parts: 70% is invested in government securities, and 30% - in shares " blue chips» (the largest and most profitable companies in the country).
Closed mutual funds can invest in:
- CJSC shares;
- Real estate, including land;
- Housing certificates.
The legislation does not restrict shareholders of closed-end funds from investing in the investment instruments of the other two funds. It is clear that the percentage of profits of closed-end funds is much higher, but considerable funds are required from shareholders here.
An open fund is not entitled to invest in risky projects in order to minimize the losses of participants.
Who owns the funds
Each mutual fund is headed by a management company (MC), which is responsible for placing depositors' money and making a profit. The fund itself is not considered a legal entity, this role is assigned to the Criminal Code.
Fund management, including the management firms themselves, is administered by the Federal Commission on the Securities Market. Legislative acts help her in coordinating the actions of mutual funds. Each management company, before starting its main activity, is required to obtain a license. For these purposes, a long and complex certification is carried out.
The management company can only place shareholders' funds for earnings. Other purposes of spending money are not allowed. To control this process, other legal entities were created - depositories. They are assigned the role of storing money in customer accounts. It is they who monitor the legality of the actions of the Criminal Code and, in case of offenses, apply to the Federal Securities Commission.
The structure of the fund also implies the presence of registrars. They are also legal entities. The purpose of their existence is the registration of customer transactions. Responsibilities include making changes to share registers.
Why mutual fund
But let's look at the benefits of funds:
- The percentage is higher than on the deposit of a credit institution;
- The activities of the funds are strictly regulated by the authorities;
- Even if a mutual fund, then the funds of the shareholders will be transferred under the management of another management company;
- You can not worry that the money will be spent by the owners of the funds for personal purposes, since every year their statements are subject to an audit;
- The presence of an independent depository, on whose account the money of shareholders is located, allows you to be sure that the money will not be lost just like that;
- Availability for contributors (even having 1000 in your pocket, you can become a member);
- You do not need to have professional skills - all investment actions will be performed by specialists for you).
A lot of advantages make mutual funds more and more popular. Thanks to the support of the state, you can defend your rights at any time. Funds are also suitable for those who want to invest in the money market, but are afraid to do so due to lack of necessary knowledge. Mutual investment funds are a great alternative to such investment.
About cons
Of course, investing in mutual funds is a process that has some disadvantages:
- There is no guarantee of income (you can also go into the minus);
- Additional expenses for payment for the services of the Criminal Code;
- Long-term withdrawal of own funds (about 7 days);
- Paying taxes on profits;
- The current underdevelopment of mutual funds in Russia makes them highly susceptible to influence from the economy, which can negatively affect depositors.
For the most part, the shortcomings of mutual funds are due to the fact that funds have recently gained popularity in our country. Few people are interested in them in the general population.
The distrust of people does not allow this area of the country's economic sector to develop in full and with quick steps. However, the last few years have given hope for the growth in the number of funds and investment instruments.
The withdrawal of funds is connected with the actions of the depository and the registrar. Without their participation, your investment share management company will not refund.
Initially, buying a share also takes several days, or even weeks. This process is accelerated only by electronic resources that allow you to quickly buy a share on the company's website. True, few people trust this type of transactions, and therefore a personal visit to the office of the management company is the most common option.
How much can you earn on investments in mutual funds
The country's regulations prohibit mutual funds from predicting any profitability, as well as from advertising it. This is due to the fact that profit as a result of participation in the fund does not always occur.
It happens that investors will invest their savings in a reliable fund that has been successfully operating for several years and brings a decent income to equity holders. However, the Criminal Code may this time illiterately manage the money. It is possible that and economic environment will help this.
In this case, you can not only lose personal money, but also go into the red. The latter occurs in practice due to the fact that the services of the Criminal Code are paid regardless of the results of transactions.
The situation described above is extremely rare. Most often, shareholders receive their profit and safely acquire new shares. Of course, it is impossible to say the exact income, but it definitely exceeds the interest on classic deposits.
It is not recommended to judge a future deal based on the results of investing in the past period. If over the past year the mutual fund of Sberbank brought 75% of the profit, then this year it can earn only 10%. This value is not adjustable for legislative level and depends on the situation, methods of investment and timing.
Compare mutual funds and other ways of earning
We have already found out that mutual funds are more profitable than a bank deposit. If we consider direct investment and with the help of funds, then the first option is more advantageous. But you need to understand that investing without intermediaries requires a lot of capital and thorough knowledge of the intricacies of a particular instrument. Funds will generate lower returns due to the placement of a lower amount and MC fees.
You can directly ( , ), the foreign exchange market, new projects and so on. Such an investment will bring income, but it also requires significant costs.
The main advantage of the funds is their accessibility to the public. You can make a minimum payment and make a profit.
Mutual funds in the same way invest in real estate (real estate fund) and other assets. Only in this case, you can become a member of a large project with minimal costs.
In addition, if for some reason you do not like one fund, you can transfer funds without loss to another managed by the same company. Thus, it is possible to change the investment instrument and some terms of the transaction.
The most profitable type of mutual fund
The issue of obtaining profitability also depends on the investment instruments. The most reliable are bonds issued by the Government of the country. True, the yield on them is slightly higher bank deposits. But if you are just starting to show interest in funds, then you can start with government securities.
Investment in securities of joint-stock companies is considered a risky event. This is a joint-stock investment fund.
The most stable income comes from companies that have existed for several decades. Their shares are the least susceptible to price spikes. You can also invest in shares of new companies. Their securities may rise or fall unpredictably.
A mixed portfolio of stocks and bonds allows you to simultaneously save part of the capital and attract additional profit. At the same time, the state clearly delimits the percentage in such an investment portfolio. Government bonds of one issue cannot exceed 35% in it, and securities of joint-stock companies and foreign companies occupy 20%.
The most risky investment is considered to be investment in low-liquid assets (real estate, land, start-ups, etc.). It is possible to withdraw money from funds investing in such assets only after a few years, usually 5-15.
This is done so that investors do not withdraw their funds, which would lead to the bankruptcy of the fund. However, such a risky event can bring a huge income.
We diversify the portfolio
The totality of all instruments chosen as an investment represents an investment portfolio. Its diversification is a set of as many investment objects as possible.
For example, to increase capital, you can invest in shares of JSC, government bonds, rent an apartment, put money in a bank at interest. That is, you distribute all your funds between several sources of income.
Diversification is quite beneficial in terms of saving money and generating income from risky activities. If you have invested in a dubious transaction, then your capital will be saved with the help of the remaining investments.
With regard to funds, the legislation does not prohibit shareholders from having shares in several mutual funds. You can buy at least one share of each existing fund. If the management company places funds in several mutual funds, you have the right to distribute your money in each of these funds.
What are the costs
Investments require not only the initial contribution, but also the cost of intermediaries.
Funding costs include:
- Account opening allowance;
- Commission for the redemption of a share;
- Commission from the total income in favor of the Criminal Code;
- Maintaining a bank account;
- Payment.
When opening an account, it is better to choose a bank that belongs to this mutual fund. In this case, you will not have to pay for account maintenance.
When you purchase a share, a commission of up to 1.5% will be deducted from your amount. It will reduce the number of units issued to you. At the same time, their number can be indicated as a fraction of the total capital of the fund.
After redeeming your share, you will also have to say goodbye to a certain amount not exceeding three percent of your share. Total income, which the MC has received, is subject to a commission (usually up to 10%) to cover the company's expenses.
The payment of tax on income received is expressed at 13% for residents and 30% for persons who are citizens of other countries.
This tax does not need to be paid if:
- You have held your share in a mutual fund for 3 or more years;
- If the amount of the profit share was less than 125,000 for the year.
Keep in mind that the tax is paid only upon withdrawal from the fund. The amount of personal income tax The Criminal Code pays for you, so you do not have to additionally apply to the tax office. When you exit the mutual fund, you will receive in your hands the amount from which the tax has already been deducted.
Where to find the current value of your share
To view all the information about the invested money, you must refer to the mutual fund website. Here is information regarding the value of the share. If you bought a share in an open fund, then the data is updated online every day. If you have purchased a share in an interval mutual fund, then the information can be updated only once a quarter.
The share price is calculated by the formula: price net assets/ number of shares. For example, the assets of the fund amount to 5,000,000 rubles. Total shares - 8000. The cost of one share: 5000000/8000 = 625 rubles. If you have 10 such shares, then your amount is: 625 * 10 = 6250 rubles. The initial purchase of a share of 500 rubles reflects an increase in the share by 125 rubles. The total increase of the shareholder is 6250 - 500 * 10 = 1250 rubles or 25%.
Information on shares is available to each depositor. It can also be obtained by contacting the office of the Criminal Code.
Shareholders' rights
For the duration of the terms of the agreement between the management company and the depositor, the latter is entitled to:
- Require an effective asset management process;
- Monitoring the course of actions of the Criminal Code (you can view the company's statements, as well as find out how it manages the amounts);
- Return of the value of the share in case of violation of the terms of the agreement by the Criminal Code;
- Selling a share or providing it as collateral (a share is a registered non-documentary security displayed in the electronic register).
In case of any unauthorized actions of the management company, the depositor has the right to apply to the court. The shareholder also has a depository on the side of the shareholder, who, under no pretext, will violate the clauses of the agreement between the management company and the depositor.
Before concluding an agreement with the Criminal Code, you can ask economic activity companies. No one will bother you to study the reporting documentation, find out the profitability of previous transactions, and also read the rules of the fund. If the MC has made several unsuccessful investment attempts, you will also be aware of this.
The management company does not have the ability to deceive its own customers. This will lead not only to litigation, but also to the loss of reputation, which will not be so easy to restore.
How to become a mutual fund investor
The process of buying a share takes a little time and is not much different from opening a standard deposit in a credit institution.
You need to go through the steps:
- Choose an investment tool;
- Find a fund that provides such a service;
- Write an application for admission as a shareholder and receive details for paying a share;
- Open a bank account;
- Transfer funds for the UK;
- Waiting for the results of the transaction.
The application, which is written during the initial treatment, gives the right to a multiple purchase of shares. That is, today you deposited the amount for 10 units, and in a month you can buy 8 more units. Also, if you decide to redeem your share, then further purchase of shares will be available to you.
You can apply to the fund directly at the office of the company or through the website. At the same time, informing about the registration of the shareholder's share occurs within 7 days if you personally apply to the office. In other cases, the company sends a written notice, which may take up to two weeks, depending on the speed of delivery of the items.
From the moment you purchase a share in a mutual fund, you are a full-fledged shareholder. Further settlements with the company for the purchase or sale of shares will occur through your bank account.
Development of mutual investment funds in the Russian Federation
Mutual investment funds in Russia have not yet earned the popularity they have in the West. This is also related to financial literacy of our population, which remains at a low level, and with a fear of something new. Financial pyramids at one time made a lot of noise and discouraged the desire of the population to invest in profitable projects.
The number of mutual funds in Russia is only growing, and the number of depositors is still increasing. But this process is extremely slow. Funds in the country appeared not so long ago, and the legislation is still not perfect in this area. Gaps in the regulatory framework make themselves felt quite often.
The yield of mutual funds in Russia exceeds 20% in exceptional cases. However, the management companies lure clients by all means and predict high incomes. As a result, the population has the impression that the funds are a win-win option that will bring mountains of gold to everyone. Great expectations of depositors and disappointment in the form of not such high interest customers are not always interested in repurchasing a share.
Nevertheless, the legislative norms are becoming more and more perfect, adapting to the conditions of our country. Those investors who have already received a high income on shares once, definitely bring money to mutual funds.
The most profitable mutual funds 2017
While past performance is not a 100% guarantee of future returns, let's take a look at the 2016 fund market leaders. So you can find out what the funds in Russia are capable of and roughly orient yourself in future investments.
The companies reflected in the table brought the greatest profit to investors.
UK | mutual fund | Tool | Income per year, % |
"UralSib" | "Energy Perspective" | — | 140 |
"Raiffeisen" | "Power industry" | — | 111 |
Gazprombank | "Power industry" | MICEX index | 107 |
"Opening" | "Power industry" | MICEX index | 104 |
VTB | "Power industry" | — | 102 |
CSG | "Power industry" | — | 101 % |
"April-Capital" | — | Second tier stocks | 85 % |
The data from the table shows that the energy sector brings a decent income for its investors, and investing in indices allows you to get over 100% of the initially invested amount if circumstances are successful.
Buying a share in one of the above companies does not guarantee you high returns. With a competent approach of the management company, you can earn 150%, and any incorrectly calculated decision will lead to the loss of depositors' funds.
How best to act as a beginner
If you decide to invest in a mutual fund, carefully study the entire fund market and analyze the latest transactions of the UK. This is easy to do according to the reports on the information channels. Also read customer reviews.
After choosing a UK, do not rush to buy a share. Visit the company office. If its representatives promise high income and too low commissions for their own mediation, you should not linger here. Such a company is interested only in the influx of new customers, and not in the latter's receipt of income.
Adhere to the following rules:
- Choose which instrument you want to invest in (correlate the risks and possible losses);
- If possible, deposit funds in several projects or in different securities;
- If, after paying for a share, you see how quickly it loses its price, do not wait until you are completely out of money;
- Before buying a share, check its value. Watch for price fluctuations over several days. As soon as it becomes minimal, make a purchase. So you can earn more.
Most importantly, do not think about high returns. Determine for yourself what income would be sufficient for you. Based on this, make your first purchase of units. As you gain experience, you can move on to more risky tools.
Its assets include both stocks and bonds.
According to the Regulations on the Composition and Structure of Assets of Joint-Stock Investment Funds and Assets of Mutual Investment Funds adopted by the Federal Financial Markets Service on December 28, 2010, mixed investment funds may include up to 100% shares and up to 100% bonds.
The rules of such a fund provide the management company (MC) with sufficient flexibility in choosing an investment strategy. At economic growth there is an opportunity to invest in stocks and get the greatest profit from their growth. When the stage business cycle changes, the following happens. The stock market stalls or even declines significantly. At this time, managers make decisions and transfer funds into debt securities.
Thus, a mixed investment fund allows the investor to avoid the so-called "drawdown" of the portfolio in difficult times - that is, it protects against serious losses. Of course, provided that it recognizes the change in the market situation in time and takes appropriate actions.
In practice, in terms of profitability, FSM on the rise of the market show a worse result than funds exclusively for shares - on average by 5-10%. But it also gets a certain advantage. Thus, from January to July 2011, the stock market was experiencing better times. The result of the investment turned out to be the following: shares of equity funds fell in price by an average of 7.5%, bond funds grew by 5%, and MSF portfolios became cheaper by only 2%. That is, the bonds in the portfolio of managers almost compensated for the fall in equity securities.
In Russia, mixed funds are Druzhina (MC Troika Dialog) with assets of 1.6 billion rubles, Alfa Capital (MC Alfa Capital) - 1.3 billion rubles, Gazprombank - Balanced ( UK "Gazprombank - Asset Management") - 1 billion rubles and others.
See what the "Mixed Investment Fund" is in other dictionaries:
- (IPIF) - an investment fund that redeems its shares sold to investors, not all the time, like an open fund, but periodically, at predetermined intervals. Typically, either two weeks a quarter or two weeks once or twice a year. In these… … Banking Encyclopedia
Investment fund- (Investment fund) An investment fund is an institution that makes collective investments An investment fund is an institution that makes collective investments by accumulating the savings of individuals Contents >>>> Investment ... ... Encyclopedia of the investor
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Unit trust- Mutual investment fund (UIF) is a property complex, without formation legal entity based on the trust management of the fund's property by a specialized management company in order to increase the value of the fund's property. ... ... Wikipedia
Mutual investment fund- (UIF) is a property complex, without forming a legal entity, based on trust management of the fund's property by a specialized management company in order to increase the value of the fund's property. Thus, similar ... ... Wikipedia
Investment declaration of the fund is part of the rules of trust management and describes the types of assets that may be part of the fund's property, as well as restrictions on the structure of the fund's assets established by law, which reduce the risks of shareholders.
The functions of monitoring compliance with the investment declaration of the fund are assigned to Specialized depository- an organization that, in the interests of the shareholders, is responsible for the storage of the property constituting the fund and control over the disposal of this property.
Investment regulation- a document approved by the Board of the management company, which reflects additional restrictions on investment risks. In fact, the regulation determines the investment strategy for the fund, subject to the restrictions set by the Investment Declaration.
According to organizational structure Management Company "Arsagera", control over compliance with investment regulations and ranking of assets is carried out by Department of Internal Control, Monitoring and Risk Management. If the limit set by the regulation is exceeded, this department identifies the reason for such an excess and notifies the Investment Department of the need to bring the portfolio in line with the regulation.
Analytical Management performs analysis of a wide range of assets circulating on the market (more than 200 share issues and all ruble bond issues circulating on stock exchanges). When choosing investment objects, their current and projected future value are compared - thus, the potential return on assets is determined. The forecast of potential returns by asset groups in accordance with the current ranking - the so-called "hit parade" - enters Portfolio Investment Department. The task of this division, in accordance with the "hit parade" of assets, is to form and maintain the structure of portfolios in such a way that they constantly contain assets with the maximum potential return, taking into account the restrictions established by the investment regulations.
In this section you will find information on the following topics:
Investment objects
"Arsagera - Mixed Investment Fund" is intended for investing shareholders' funds in stocks and bonds. The main difference between this fund and the fund "Arsagera - Equity Fund" is that its portfolio, along with the shares of the most efficient companies that play a significant role in Russian economy, bonds are purchased, the main criteria for choosing which are the liquidity and reliability of the issuer.
At the same time, the range of the share of shares in the fund's assets is clearly defined: from 40 to 60%, depending on the ratio of the average potential return on shares and bonds. This is due to the fact that Arsagera Management Company adheres to a strategy of clearly defined specialization of products according to risk. This gives our clients the opportunity to understand the degree of risk that accompanies their investment, and to be sure that once the chosen measure of risk does not change.
It is important to understand that the measure of risk determines the return:
The more returns an investor wants, the more risk they must take. Below is the position of the fund on the risk / return scale compared to other products of the company.
The combination of bonds and stocks in the assets of the fund makes it possible, with a high level of reliability (the bond part plays a compensating function, ensuring stability), to achieve a return that exceeds conservative types of investments (bonds, bank deposits).
Efficiency and business development potential are not the only criteria when choosing investment objects. In addition to the above criteria, we also pay attention to the scale of companies' business and the liquidity of their shares - factors that determine the degree of risk of investments in equity instruments. A larger (and therefore capitalized) business is more stable, which makes the forecast more predictable financial results such companies. The higher the liquidity of the shares, the easier it is to make transactions with them and the greater the chances, if necessary, to quickly exit the investment. The main criteria for choosing bonds are their liquidity and the reliability of the issuer.
Selection of assets
The history of the functioning of stock markets developed countries and research of the Criminal Code "Arsagera", conducted on stock market Russia show that in the medium and long term, the exchange rate dynamics of the company's shares is influenced, first of all, by its economy. Therefore, at Arsagera Management Company, we consider the purchase of securities of companies not as a game on fluctuations, but as an investment in their business.
The stock market is and will continue to be an integral part of market economy, which allows companies to raise funds for their own development, and provides investors with the opportunity to participate and own an effective business.
Accordingly, investors who invest regularly and over a long period of time derive the greatest benefit. Regular and competent investment is the key to human well-being.
Our company strives to create an opportunity for its clients to invest capital in the most efficient assets, as well as to become their co-owners and participate in the profits of the most successful enterprises.
The key to successful forecasting of financial asset prices is the application of economic models. The acquisition of company shares is preceded by a multi-level analysis, during which a comprehensive study of the factors affecting the activities of companies is carried out. The search for the most promising objects for investment is carried out using economic models at all stages of the analysis.
At the first stage, the external conditions in which the company operates are subjected to a thorough analysis: the macroeconomic situation in the country, the development of the industry in which the company operates (the balance of supply and demand is predicted, and a price forecast for the industry's products is also built).
At the second stage, a thorough analysis of specific issuers is carried out, the result of which is a forecast of the main financial indicators enterprises (revenue, net profit, equity, etc.).
The key to successful investment in the bond market is to predict the level of interest rates in the economy. To determine the yield at which investors will be willing to purchase bonds in the future, our company uses economic models, describing the future behavior of various economic entities that affect the level of interest rates. Forecasting the future required return on investments in bonds makes it possible to draw up the optimal structure of the securities portfolio (for example, in the event of a fall in interest rates, investments in bonds with a long duration will bring the highest return).
Thanks to such a deep study, the shareholders of the Arsagera - Mixed Investment Fund can be sure that by acquiring a share of this fund, they become the owners of the most effective and promising companies on the Russian stock market and creditors of enterprises with a good level of financial stability.
When choosing investment objects, their current and projected future value are compared - thus, the potential return on assets is determined. Potential return is the main criterion when investing, which creates the basis for the application of a full investment strategy. In the Fund "Arsagera - fund of mixed investments" the share of funds is reduced to a minimum. This is due to the fact that the potential return on cash is zero (the possession of cash itself does not generate income). Cash appear only at the moment of reorganization of the portfolio or as a result of the arrival of new shareholders in the fund.
Every investor wants to get the maximum return on their investment, but only at a level of risk that suits them. Indeed, for example, not everyone is ready to invest their own funds for the sake of a 100% annual return with a high risk of losing them. On the other hand, the profitability of a deposit in a bank that guarantees the return of funds is also not very tempting. In the case when an investor independently chooses specific assets for investment, he himself determines the risk level of his investment portfolio, guided by his own knowledge in the field of risk management, experience and intuition. But what if the funds are transferred to trust management and the choice of specific assets is entrusted to professionals from the management company? In this case, it is necessary to clearly understand with what measure of risk the management company will invest funds.
Arsagera Management Company has developed a risk management system based on investment postulates:
The measure of risk determines the return. In other words, risk and return are "two sides of the same coin". The higher the level of expected return, the greater the risk the investor must take on, and, accordingly, the higher the investment risks, the higher the return investors will demand from this investment.
The ratio "risk / profitability" is determined by the client, since this is an individual (personal) characteristic of each person. And the task of the management company is to form an investment portfolio of the most potentially profitable assets without exceeding a given level of risk.
Regular ranking- The best way formation of groups of assets that are homogeneous in terms of risk. To clarify this postulate, we give an example. The shares of Gazprom and Tatneft belong to the same category of assets, so the types of risks associated with investing in these assets are the same. At the same time, it is intuitively clear that investing in Gazprom shares is less risky than in Tatneft shares, that is, the degree of risk is different. MC "Arsagera" has developed a ranking technique that allows you to give quantitative estimates investment risk measures instead of the conditional division of shares into the first, second and third echelons, and form groups that are homogeneous in terms of risk. Similar methodologies have been developed for other categories of assets.
Before explaining how risk can be managed, let's define the concept of risk. Risk is the possibility of the occurrence of one or another adverse event that adversely affects the return on investment. Respectively, risk management system is a set of methods and actions aimed at limiting the consequences of risks associated with investment.
At the initial stage, the specialists of Arsagera Management Company analyzed all the risks associated with investing in shares and bonds, and identified ways to limit them (Table No. 1), as well as developed a ranking methodology. In accordance with the current ranking methodology, shares are divided into 5 groups depending on the risk associated with investing in them. The ranking criteria are the capitalization of the issuer and the average daily turnover of its shares. Bonds are divided into 6 groups. The criteria are the degree of solvency of the issuer, the level of its corporate governance and the average daily trading turnover.
Table number 1. Types of risks associated with investing in stocks and bonds, and ways to limit them
Type of risk | Limitation methods |
---|---|
Country risk is the possibility of adverse changes in the value of securities caused by changes in the political, economic or social situation in the country. | It is limited by setting a limit on the securities of issuers of one country. |
Currency risk is the possibility of an unfavorable change in the value of securities caused by a change in exchange rate currency in which they are denominated. | Limited by setting a limit on securities denominated in one currency. |
The risk of changes in the market value of shares is the possibility of an unfavorable change in the value of securities as a result of a decrease in the prices of shares of one or more issuers. | Usually limited by setting a limit on the share of shares in the investment portfolio. Since the Arsager Management Company has developed a methodology for ranking shares into homogeneous groups according to risk, it is possible to make more precise settings for limiting this risk by setting limits on the total share in the portfolio of shares of each group, according to the ranking, and on the share of shares of one issuer. |
The risk of insolvency of the issuer of debt obligations - the possibility of default by the issuer of bonds. | Since one of the criteria for ranking bonds is the solvency of the issuer, this risk is limited by setting limits on the total share in the portfolio of bonds of each group, according to the ranking, and the share of bonds of one issuer. |
The risk of loss of liquidity of securities is the possibility of an unfavorable change in the value of an asset, caused by the impossibility of a quick sale of an asset without a significant decrease in its value. | When ranking stocks and bonds, the average daily trading turnover is taken into account, so this risk can be limited by setting a limit on the total share of securities in each group. |
Interest rate risk is the possibility of adverse changes in the value of debt securities caused by an increase in interest rates. For example, if an investor bought a coupon bond with a yield of 10% for 100% of the face value, and after some time interest rates increased, and the yield of bonds with a similar measure of risk increased to 15%. Accordingly, the investor either sells this bond cheaper than face value, or waits for its redemption, receiving a return on investment 5% less than the market. |
To limit this risk, you can set a maximum maturity (including early repayment, redemption by offer) of bonds purchased in the portfolio. |
Industry risk is the possibility of an unfavorable change in the value of securities caused by the occurrence of events that significantly worsen the conditions for doing business for issuers in a particular industry. | As demonstrated in the example, this risk is limited by a limit on shares of issuers belonging to the same industry. |
In securities funds managed by Arsagera Management Company, the risk management system operates according to the following scheme:
Let's explain the diagram above.
The investment declaration of the fund is part of the trust management rules and describes the types of assets that may be part of the fund's property, as well as restrictions on the structure of the fund's assets established by law, which reduce the risks of shareholders. The functions of monitoring compliance with the Investment Declaration of the fund are assigned to the Specialized Depository - an organization that, in the interests of shareholders, is responsible for storing the property constituting the fund and controlling the disposal of this property.
Investment Regulations - a document approved by the Board of the management company, which reflects the restrictions listed in Table No. 1. In fact, the regulation determines the investment strategy for the fund, taking into account the restrictions established by the Investment Declaration. According to the organizational structure of MC "Arsagera", control over compliance with investment regulations and ranking of assets is carried out by the department of monitoring and risk management. If the limit set by the regulation is exceeded, the monitoring and risk management department identifies the reason for such an excess and notifies the investment department of the need to bring the portfolio in line with the regulation.
The analytical department prepares a forecast of potential profitability for groups of assets in accordance with the current ranking - "hit parade". The investment department, based on analysts' forecasts, forms and reformulates portfolios, making sure that the portfolios always contain assets with the maximum potential return, taking into account the restrictions established by the investment regulations.
Such a scheme of work allows minimizing the possibility of a conflict of interest, since the control over compliance with the investment declaration of the fund is carried out by the Specialized Depository, independent of the management company, and the functions of managing the portfolio and controlling investment risks in Arsagera Management Company are assigned to independent divisions.
To ensure the operation of a mutual investment fund, the efforts of one Management Company are not enough. In accordance with the law, other organizations must also take part in the activities of the fund.
Management Company
Carries out trust management of the fund's property in order to increase it in accordance with the investment declaration.
public joint-stock company"Arsagera"