In this article we will show you how to find investment funds, how to invest in them and how much you can earn by investing in investment funds.
Since its inception, in 1822 In Belgium, mutual funds have become a popular investment vehicle. In 1951, there were already more than a hundred funds with 1 million investors in the United States, and today there are more than 120 million in the United States alone. Simplicity and efficiency bring great benefits to investors who lack the knowledge, experience or time to trade on the stock exchange on their own.
Investment fund is an organization that manages investors' funds, which are used to purchase securities, forming a huge portfolio. Thanks to the accumulation of large capital, the investment fund can purchase securities for favorable conditions and bring more profit than individual market participants. The profit received is divided among investors as a percentage of their deposits, minus the fund manager's commission, which can be from 7 to 20%.
Currently there are such types of investment funds, How
But today in the world the most common management type investment mutual funds, these are organizations in the form of a joint stock company, when investors can, instead of the usual deposits and contracts, simply buy their shares. Shareholders will receive profit in the form of dividends, as well as an increase in the value of securities. Today the share of such investment funds is 93,3% .
Today, mutual fund assets exceed $6 trillion.
In general, mutual funds are an analogue of Russian mutual investment funds ( mutual fund), only instead of shares, investors buy their shares, which makes the investment process quite easy, because in order to do so, you don’t even have to leave your home.
Now about 38% Americans are shareholders of mutual funds.
In every decent job in the US, companies pay pension contributions for employees, at the same time, employees are given the right to choose where their pension savings will go - these are portfolios of stocks, bonds and other exchange-traded assets with a low and protected risk. So pensioners in developed countries can afford to travel and buy new cars.
In Europe, mutual funds are similar to the United States, but are governed by different, similar laws.
In general, based on the definition of what an investment fund is and what they are, the principle of operation should already be clear. As in the case of shares, the value of shares of mutual funds is determined based on the value of all assets of the funds per 1 share, or for example a unit. The value of assets is calculated daily.
Mutual fund shareholders can sell shares to the fund upon request, and in the case of mutual funds, there may be minimum terms investments, for example, you can redeem shares no earlier than in 3-6 months.
Unlike mutual fund shares of Russian banks and companies, where separate registrations and signatures of agreements are required, mutual fund shares are much more flexible, because through, for example, a broker (), you can buy fund shares USA, France, Argentina, India, Japan and so on.
If we talk about how much you can earn on investment funds, then according to the rating, profitability indicators border on 12-40% per annum. When calculating the expected profit, it is worth considering that the funds' profit is not stable and if you invest for 3-5 years, then you should look at the profitability last year, and the total profitability for the last 5-8 years.
Below we will look at examples of investment funds and their profitability, as well as ways to invest in investment funds.
The work of the investment fund is guaranteed by such international acts as “ Investment Company Law" And " Securities Law", in Russia this activity is regulated by Federal Law No. 156 “On Investment Funds”, in the USA - Securities and Exchange Commission ( SEC), in Europe this is mainly a concept UCITS– “Undertaking for Collective Investment in Transferable Securities” (“ Agreement on collective investment in transferable securities"), therefore the activities of the funds are protected, and investors do not risk becoming victims of fraud.
For those who already know how an investment fund works, it would be useful to familiarize yourself with the “golden rules” of working with funds, first formulated by the famous financier:
Like most others financial instruments, investing in funds today has completely moved into online. So there is no need to rack your brains about where to find an investment fund.
If you want to buy shares of mutual funds, then you need to study their ratings in English in the popular publications that we listed above.
If you have made your choice, then all that remains is to buy their shares, which is no more difficult than ordering pizza on the Internet.
We will only talk about the most accessible and best options for citizens RF And CIS. For example, in Russia there is a law on investments in foreign shares through Russian brokers, according to which they can only be purchased by a qualified investor with a minimum amount 6 million rubles. To circumvent this law, everything Russian brokers create subsidiaries in Europe. (EU) followed this path.
Here it has direct access to all world exchanges and a single account for trading stocks, bonds and other assets.
One of the main advantages of collective investment is the minimum investment risks and high safety of the deposit. It is for this reason that investing in funds is becoming increasingly popular.
Initially, it may seem that investment funds on average give low percentage profits, but their essence is not to get rich in a year, but to earn a fortune within 10-25 years, look at how it works with reinvestment and you will understand how it works pension funds in the USA and why they are so rich.
Having learned what an investment fund is, it would be useful to emphasize its main advantages:
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Over the last twenty years, Russian investment funds have changed and expanded. Each of them has its own scheme of work and level of risk. The greatest income is offered by those funds where the degree of risk is quite high.
A mutual fund is an association of several investors whose money is “invested” by a professional manager in securities to receive income from the invested capital. All fund property belongs to the shareholders, and the management company only manages it in the interests of investors.
Legislation prohibits mutual investment funds in Russia from advertising expected returns; they can only provide potential investors with their previous returns. Based on this data, citizens decide whether to become shareholders or not.
An investment share is a registered security; it certifies its owner’s right to part of the fund’s property. It can be transferred to another person (as a gift, by inheritance, etc.) or sold.
The shareholder’s share in the mutual fund directly depends on the funds deposited. is different for each mutual fund. It can cost from several thousand rubles, the upper limit is not defined.
Withdraw funds invested in the fund cash you can by selling a share. As an option - to other shareholders, but usually the management company is involved in its implementation.
The advantages of Russian investment funds can be considered the following:
It is necessary to mention the disadvantages of this type of investment:
Investment funds in Russia are diverse. For convenience, let us present the differences between the funds various types in table form.
Criterion | Types of funds | Description |
By degree of openness | Closed | Units are issued and redeemed during the formation of the mutual fund. You can redeem the shares after the end of the mutual fund’s operating period. Such funds are most often formed for a specific project. |
Open | Units are issued and redeemed every business day. The assets of an open mutual fund are securities with high liquidity that have stock exchange quotations. |
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Interval | On specific dates specified in the rules of the mutual fund (twice or three times a year for 2 weeks). The fund's assets are usually securities with low liquidity. |
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By investment direction | Money Market Funds | Funds are invested in bills of exchange, certificates of deposit and other short-term deposits. |
Bond funds | Investments in bonds bring monthly income. The most reliable of bond funds are government ones, since securities are issued by the government. | |
Equity funds | Joint-stock investment funds in Russia are very popular due to their high returns, but the value of the assets of such mutual funds fluctuates greatly depending on the situation on the securities market. | |
Mixed investment funds | Funds are invested in both stocks and bonds, thanks to which shareholders receive both a fixed income from bonds and good profit with a high degree of risk (from stocks). | |
Real estate funds | Profit is made by renting out real estate or reselling it. | |
Funds of funds | The funds are invested in other funds, thus ensuring high reliability of the invested funds. |
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Funds sector | Funds are invested in companies operating in the same industry. |
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Foreign equity funds | Money can be invested in companies located in different parts of the world. |
In addition to those presented in the table, there are other types of mutual funds:
Potential shareholders must have information about the reliability of Russian investment funds. The profitability ranking is as follows:
These are just the most popular investment funds and companies in Russia that are most widespread.
They have been operating in Russia since the mid-1990s. During this time, they managed to win the trust of citizens as a good way to invest free finances to obtain additional income. However, before making a final decision to invest in a particular fund, you must carefully study the information about it.
A clear definition of the purpose of the investment and an understanding of the basics of its further use will help you choose the right investment fund. Before talking about investing as such, it is necessary to familiarize yourself with the concepts of investment funds, their varieties, differences and history of creation. All this will be discussed in our article.
An investment fund is a property complex managed by a licensed company. Depending on the form of creation, they are divided into shares and joint stock.
Joint stock companies place shares in open trading, attracting large and small investors. After purchasing securities, capital is injected into the company. As a rule, anyone can buy shares. Income from them is expressed in the form of dividends, or the difference between the purchase and sale prices. The sale of shares takes place on stock exchanges.
Joint stock funds can be closed or open. The first are created for a limited number of investors, the second - for everyone.
A mutual investment fund (UIF) involves the issue of registered securities. The difference with joint stock is the division of property into certain shares, the value of which is expressed by the number of acquired assets.
We will not describe the features of each type of investment fund and delve into the methodology of their work. Let's consider only the most popular of them - mutual funds.
Mutual investment fund - collective form investment, which involves dividing property into parts (shares). The fund is managed by a management company. The activities of the mutual fund are based on Federal Law No. 156-FZ of November 29, 2001 “On Investment Funds”.
Mutual fund is considered one of the most the best ways investing money. At the same time, the investor does not have to have knowledge and experience in the management and core activities of the company. It is enough for him to purchase registered securities and entrust management knowledgeable people, and receive income in the form of dividends.
The attractiveness of a mutual fund lies in the possibility of investing minimal amounts, it can even be one thousand rubles, which in the future will bring colossal profits to its owner.
Open-end investment funds are considered the most convenient. The purchase and sale of shares is open to all investors without restrictions at any time. The investor, at his own discretion, can purchase and sell shares, making a profit from the difference in price.
Interval funds involve the sale of securities at a clearly specified time, i.e. in different time periods. For example, sales can be carried out once a quarter or every two weeks.
It is possible to exit a closed-end investment fund only at the end of its existence.
These typically include real estate funds.
The management company takes a fee for its services. This may be a premium on the value of shares, which by law cannot exceed 1.5%, discounts on the sale of assets (no more than three percent), a fixed percentage of the net asset value (from 0.5 to 5% per annum). The remuneration is taken regardless of whether the investor makes a profit or loss. Thus, the activities of the management company are paid in any case.
Checking investment funds (CHIF) are a bright and not the most successful representative of the post-Soviet space. After the collapse of the USSR, a decision was made in the Russian Federation to create these funds with the aim of privatizing vouchers. Their large owners could not only make a profit, but also influence management decisions.
CHIFs were created in the form of closed societies, i.e. selling shares was practically impossible. Their owners received a percentage of the enterprises' profits.
During the period of popularity of CHIFs, their number was about 600. Many of them went bankrupt for various reasons, including the revocation of state licenses, double taxation and transfer of money to offshore zones.
Over time, CHIFs were renamed into mutual funds. The risks of participating in them have been reduced, and management has come under the control of experienced companies.
Today, participation in mutual funds carries virtually no risks.
Despite this, many people remember the disastrous fate of their investments, which still causes some fears and mistrust.
Investing your money in an investment fund is quite simple, especially when choosing a mutual fund. For this purpose, you just need to find a suitable company and buy the required number of shares. When choosing a company, you can also use the services of financial consultants who will quickly select suitable offers. The disadvantage of cooperation with them is the need for a one-time payment for services.
Shares can be purchased:
You need to choose a suitable fund based on its income over the past few years. Promised dividends should not be lower than the average interest rate, set by banks for deposits.
Give preference to long-established funds with a positive reputation.
Buying registered securities individual is required to open a bank account, as well as a securities account. Before signing the purchase and sale agreement, you must provide your passport and identification code.
After completing and approving the application for the purchase of a share, an agreement is signed in four copies. Investment papers are credited to the owner's account no later than seven days from the date of purchase.
The amount of profit will directly depend on the amount of money invested. So, the larger the investment, the more income it will bring.
Many mutual funds set a threshold minimum, the value of which starts at 10,000 rubles. However, there are also funds without financial restrictions. Of course, you should understand that you can get a small profit from a small amount.
That is why experts advise investing at least 50-100 thousand rubles. These amounts can really bring good profits to the investor.
Before determining the amount of investment, a beginner should decide in advance on the scope of the fund’s activities and study the information about it in detail. Particular attention must be paid to statistics.
Investor deposits are reliably protected from deliberate theft or misuse. They are stored in a special depository, away from the money of the management company.
Investing in funds raises some concerns regarding the occurrence of unforeseen risks.
Many people mistakenly believe that it is better to put money on deposit in a bank, forgetting that the risk of bankruptcy financial organization also great.
At the same time, the percentage of the investment will be fixed, which limits the receipt of good profits. Dividends from the acquisition of assets will increase as demand for the company’s services or goods increases. They will allow their owner to open the way to high profits.
Among the most popular and profitable investment funds created on the territory of the Russian Federation, we can separately highlight:
The choice of modern funds is actually huge. Among them, everyone can find a suitable investment object for themselves.
Investing money in any case carries great risks. The investor's goal is not only to make a profit, but also to minimize losses. Therefore, a beginner should remember some simple rules:
When investing money, remember that it should be free. It is not advisable to take out loans or spend your last money for this purpose.
Creating your own fund is a risky, but profitable undertaking. It involves the development of a specific business idea and action strategy. In this case, it is necessary to find a group of investors ready to invest large sum money.
You can manage the fund in two ways: with the help of a third-party management company or personally, having received permits. The first option is considered the most successful, since the company’s team includes experienced specialists who know how to act correctly in a given situation. They are able to bring the project to profit by minimizing risks. The management company's remuneration percentage will be relatively small.
To avoid theft and waste of investor money, all funds are stored in a depository created along with the fund. Legality of actions and financial transactions management company are audited annually by state audit authorities.
In conclusion, it is worth saying that the search for a profitable method of investing money will sooner or later lead its owner to mutual funds. They are the most profitable investment that quickly pays off and begins to generate income. The right fund will help you double or even triple your capital. The main thing is to completely trust the management company, be patient and give time for the full implementation of the plans of qualified specialists.
Hello! In this article we will talk about investment funds.
Today you will learn:
Many people have heard what an investment fund is more than once. But whether it is profitable to engage in them is a very relevant question that interests many potential investors. Today we will try to give a reasoned answer to this question.
IF - this is the form collective investment. That is, the total investment capital is formed due to common funds fund participants.
Usually this is a joint-stock company or an organization - where the ownership of the participants is shared. The point here is the same: ownership of assets is collective.
Any investment fund is engaged in attracting and pooling investor money in order to invest it in various assets: real estate, antiques or shares. An investment fund also increases the value of assets, and therefore the value of the investments made by each of the investors.
To increase value, fund assets are bought, sold and transferred. This is done by fund specialists who are professional investors. There are funds in which asset management is carried out automatically, but for now these are special cases.
Each client is entitled to a portion of the profit received. And the investment fund itself will receive a profit from payment for the services provided.
Fundamentally important point for the investor: how is the reward received? From the profit that was received or the commission - the value is constant (even if there is no profit). No one wants to pay for work that was done poorly, so you need to carefully read the contract being concluded.
By the way, statistics say that more than half of citizens who are investors do not even read contracts to the end. This can be fraught with unpleasant consequences.
A person who is an investor does not take part in the management itself, but has the opportunity to get acquainted with the fund’s reports, and therefore can assess how effective the investment fund’s work is.
All that has been said can be summarized in just a few points:
There are several types of IF:
Let's talk about each of them in more detail.
In such a fund, property that is common is distributed among investors in the form of shares. Shares are securities that confirm that the investor has ownership rights to a certain part of the funds. The essence of a mutual fund is that the team invests funds in a specific project.
Investments can be made in the following areas:
Mutual funds are especially attractive because the initial investment amount can be small. In addition, risks are distributed among all investors, and this reduces the likelihood possible loss funds.
The activities of such funds in our country are regulated by Federal Law.
Mutual Fund – not a legal entity, it is a complex formed from the property of its investors.
Another fundamentally important point: a mutual fund cannot accept property pledged as a deposit.
Mutual investment funds are divided into several:
Mutual Fund Management
The mutual fund and its shareholders interact with management company. This happens under a trust agreement . The maximum period during which such an agreement is valid is 15 years. Under this agreement, the management company acquires securities and other assets.
The trustee does not transfer ownership of the money or property of the shareholders, he only manages them. And for this activity he is paid a commission.
Trust management is of 2 types:
You don’t need to immediately count on a huge profit, but you shouldn’t discount the possibility of multiplying your capital through investments either. The main thing is to decide what type of fund to invest in.
If you choose a venture fund, then you will need significant funds for investment, and the payback period will take a long time: 5-10 years. Such an investment, of course, has a high level of risk, but at the same time there is the opportunity to receive a large income, since technology does not stand still and will be in more and more demand every year.
This is a state-owned company that carries out co-financing operations for various projects.
Distributes its shares among fund participants. Shares are usually inexpensive, which means the number of investors is steadily increasing. You can invest in such funds without fear. large amounts funds, since the risk of their loss is reduced due to large quantity depositors.
They are not widely used in Russia, but are very popular in the USA. They are aimed at obtaining the maximum return on investment. Their main feature is large amounts of deposits. The main disadvantage: they are practically not regulated by regulations.
They are especially typical only for the Russian Federation. They appeared in transition period when the state economy began to move from planned to market type. They were created to transfer property from state ownership to private ownership. On at the moment Most funds of this type have been liquidated.
Shares of such funds are traded on the stock exchange. And the price for them will change along with the activity of traders.
Let's summarize : The types of investment funds in Russia may differ from those that operate in other countries. For example, hedges are not common in our country, but checks are available (a small number).
Profit and capital preservation directly depend on how correctly the investment fund is chosen. First of all, decide what is the purpose of your investment? This is the goal you should start from when choosing an investment fund. Also keep in mind that there will not be a fixed profit: it consists of several factors and may vary.
Now let’s look at each step that needs to be taken on the path to choosing a reliable investment fund.
Step 1. We decide on the amount and period of investment.
This stage can be called the most important. The following principle applies: the smaller the investment amount, the narrower the range of options. The larger the amount, the more extensive the choice. As for the timing, the situation here is as follows: different types IF turnover periods are different.
If you want, this is a long-term investment; if in stocks and bonds, then the funds turn over faster, but the risks are significantly higher.
Step 2. Choosing the appropriate type of IF.
If you have no investment experience, then it is better to choose an open mutual fund where the liquidity of the shares is high. That is, the participant can withdraw his investments from circulation.
If you are an experienced investor and know how to balance risk and return, then use other tools. For example, real estate funds, venture funds or mixed ones.
Step 3. Choosing a company to manage.
Direct deception of investors is a risky business for a management company. They are most often afraid of breaking the law and usually do not make unreasonable promises.
You can control your investments yourself if you choose an active deposit. In this case, you can deposit and withdraw funds at any time and perform any actions to achieve maximum profitability. This is available in open type IF.
If you plan to forget about the invested capital for a while, choose a closed-end or interval fund.
Step 4. Comparison of IF ratings.
Step 5. Final choice.
Having analyzed all the information received earlier, we focus on a specific fund and management company. To dispel all doubts, consult with people who already have investment experience or visit investor forums on the Internet.
If you are a beginner, then choose a stable and popular fund. But this does not mean that the majority opinion is absolutely correct.
In principle, an investment fund is a reliable and affordable investment instrument. Their activities are customer-oriented and transparent.
But it still doesn’t hurt to pay attention to some indicators:
People with experience advise making choices using the elimination method. It is also recommended to collect as much information as possible about the funds, this will protect your funds.
To start investing and purchase a share in the selected fund, you need to follow a few simple steps. Visit the management office and leave your application. To register, you need to have with you: a passport and funds to buy a share. If the payment is non-cash, then you only need a passport.
If you plan to invest in a mutual fund of a bank, then you will have to visit the bank itself, or rather, any of its branches.
Note: This table is not an investment fund rating, but an overview of the most famous companies.
No. | IF name | Brief description |
1 | Finam | Offers brokerage and wealth management services. Size minimum rate 18% |
2 | Teletrade | A stable and large company that is over 20 years old. Specializes in investing in Forex. Clients have the opportunity to passively invest in trades |
3 | BCS Broker | Provided by Prof. assistance in financial management. Each investor has the opportunity to receive advice from a personal advisor. The company is a leader in working capital |
4 | FinPro | The company specializes in real estate investment. They advise and train clients for free and for free. A personal investment plan is developed for each investor |
5 | Finance-Invest | A company operating since 1995. The company's staff includes professionals from foreign and Russian banks |
6 | SotsAgroFinance | Invests in precious metals and minerals. Also carries out retail sale of jewelry. For individuals there is a fixed rate. interest rate under investment agreements |
7 | Adfincom | Investments in stocks and bonds of high liquidity. Member of the Swiss-Russian Business Association |
8 | VTB Capital | It is an open-ended fund. The minimum amount of funds for investment is 5000 rubles. |
9 | Gazprombank Asset Management | Invests in securities and has been active on the market since 2007. The minimum amount for the first purchase is RUB 5,000. |
10 | Sberbank Electric power industry | Open type mutual fund. In operation since 2006, the largest % of funds are invested in shares of energy companies. The minimum amount for investment is 15,000 rubles. |
There are several hundred different investment funds operating in the Russian Federation. They have different management structures and profitability. Many of them have the ability to remotely invest and withdraw funds to client accounts.
Unfortunately, along with offers from large and serious companies in the field of investment, there are offers that come from scammers. Often even experienced investors get caught in these networks, let alone beginners.
There are a number of signs that will help distinguish fraudulent offers from real ones:
We hope that this information will help many people avoid dealing with scammers. Communicate with representatives different companies, but you shouldn’t take everything they say as a guide to action.
So, let's summarize. In this material, we answered questions regarding investment funds as fully as possible. For some, the information received will help preserve and increase their accumulated funds, while others will simply take note of it. But it’s worth knowing that an investment fund is far from the only investment instrument. There are others that are no less attractive to investors.
Evgeny Smirnov
Bsadsensedinamick
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Investments
Some of the most popular investment funds in Russia are Finam Management, Otkritie, URALSIB and Alfa Capital.
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This article will be useful to those who are planning to plunge into the topic of investment. Investment organizations began its development after the Second World War. Now they are quietly competing with banks and other financial enterprises.
The information presented below will familiarize future investors with all the nuances of investment funds, and also provide a list of the most reliable funds in Russia and the world.
One of the most profitable types of capital increase is investment through investment funds. What is it and what are the features of such actions - more on that later.
An investment fund is a company that carries out collective investment, where all participants in the process invest money with the aim of making a profit. Funds are invested in business projects, real estate, securities, government and private programs. You can learn more about the Sberbank investment fund.
The essence of investing is very simple: investors invest funds to create a common capital. Then the target directions of the created fund are carried out: something is acquired, profits grow, and the like. This way they are created stock investments. According to the charter, assets are generally acquired for each member of the financial organization on a first-come, first-served basis.
Let's look at the features investment investments, as such. Currently, due to the countless number of such funds, people are confused about which project is better to choose for investment. To make such a decision, you need to evaluate the possible profits and costs of maintaining the project. Implementation deadlines, profitability and risks are important indicators in this analysis.
It is also necessary to consider the type of fund: private or public. For example, a regional investment fund provides investors with protection and support at the legislative level. By co-financing projects, the state and general manager Funds provide adequate guarantees to investors.
For those who are familiar with the English language, it is no secret that “venture” in translation means “risk”.
The investment venture fund considers only those projects that use innovation. There is a very important factor here: to participate in venture funds you need to take high risks. This can be either very profitable or completely unprofitable. After all, it is very difficult to predict the success of a newly created company in advance.
Risk is the main thing negative trait this type of fund: more than half of the investors simply disappear after the first problems.
Unlike venture investments, direct ones are much less risky.
Venture funds assume the presence or absence of controlling participation of investors in the implementation of projects. In addition, direct investors invest their capital at later stages in order to increase efficiency and further development and expansion of the company, while venture investors, on the contrary, only at the initial stage.
A private investment fund can be owned by both individuals and legal entity. Not every investment fund can make huge profits and at the same time be visible to the country. A private investment fund implies confidentiality, flexibility, and even inheritance of your capital.
Such funds do not have to be registered with government organizations.
A private investment fund is a closed organization, and this is the main difference from the opposite type. The main investor, or more simply, the creator of a private fund, owns all the information, fully controls the processes and issues special internal rules. All shareholders adhere to these rules.
Which financial companies in Russia are among the best? According to financial experts, there are five largest investment funds in Russia that future investors should pay attention to.
This section of the article offers a list of the best investment funds in the Russian Federation in terms of profitability and development. There are only five of them:
There are also other largest companies in Russia that occupy leading positions as the most reliable. There are ten of these investment funds. In the ranking compiled by financial experts, Russian investment funds occupy the following positions:
Certainly, Russian funds are rapidly gaining momentum in their development. But a truly serious businessman always takes a broader view. This section of the article will tell you which of the world's strongest investment funds are leaders in reliability, profitability, liquidity and reputation.
International investment companies, and there are many of them, can be divided by country:
The largest investment funds in the world are indicated in brackets, which have maintained their reputation for many years and brought profit to investors.
The leaders among European countries are funds from Luxembourg, Ireland, Great Britain, Germany, France, the Netherlands, Belgium and the Czech Republic. Large foreign companies are distinguished by their reliability, proven over decades. Western funds appeared much earlier than Russian ones, and as a result, they are valued higher.
There are open-ended and closed-end investment funds. Open type assumes free purchase and sale of shares.
Having the necessary resources, at any time the investor can become a participant in an open-ended investment fund. Neither the amount of capital, nor the duration of the project, nor the number of shareholders is limited.
Closed-end funds issue a limited number of investment certificates. They can be sold. Distinctive feature open is the liquidity of their shares. That is, they can be sold and reacquired, which cannot be done in closed ones. However, this difference often leads open funds to bankruptcy. Such a disastrous result is influenced by economic crises or political upheaval.
A corporate investment fund is joint stock company joint investment. The activities of such institutions are regulated by two documents: the charter and the regulations.