Investment fund– a property complex owned by a joint-stock company or in common shared ownership of individuals and legal entities. The investment fund is managed by the management company in the interests of the investor.

The main task of investment funds is to provide access to the securities market for non-professionals and to attract money from ordinary investors into the economy. At the same time, asset management is carried out by licensed professional market participants.

Investment funds in Russia are created and managed on the basis of Federal Law No. 156-FZ of November 29, 2001 “On Investment Funds”.

Investment funds are of two types depending on the form of creation: joint stock and mutual funds.

A joint-stock investment fund is an open joint-stock company whose exclusive activity is the investment of property. A joint stock investment fund places ordinary shares. That is, in order to become a member of the fund and invest money in it, you need to buy its securities. And in order to withdraw from the participants, sell these shares on the open market, for example, on the stock exchange.

A mutual investment fund (UIF) is not a legal entity. The Law “On Investment Funds” defines it as “a separate property complex consisting of property transferred into trust management.” In order to become an investor in a mutual fund, you need to buy a share from the management company. The shares are issued in the form of registered securities, confirming that the investor owns a share in the net assets of the fund. The management company, according to the established rules of the fund, sells and redeems these shares.

In turn, mutual funds are divided into open, interval and closed.

The management of investment funds can only be carried out by a professional participant in the securities market - a management company that has the appropriate license.

Based on investment objects, investment funds can be divided into stock funds, bond funds, and mixed funds. There are also industry funds that specialize in areas such as investments in the oil and gas complex, mechanical engineering, etc.

Index funds are mutual funds whose investment portfolio is similar to a stock index. The index is formed by securities of companies that are market leaders, so the risk of such investments is low.

Real estate funds are created, as a rule, in the form of closed-end funds, since the sale of construction projects can take much longer than the sale of marketable securities.

In addition, modern legislation identifies so-called funds for qualified investors as a separate group. This category includes hedge funds that have significantly greater legal freedom in choosing objects for investment, including the use of derivative securities.

So far they have not received sufficient distribution in our country, but in developed countries there are also venture funds whose task is to support companies and promising projects at the initial stage.

The history of investments in funds began in the 19th century, but in a short period of time - already in the second half of the 20th century, investment funds began to compete with the largest banks in the United States in terms of the volume of financial transactions. In the article, we will look at what an investment fund is, what types of funds exist, what criteria to use when choosing a fund, how much you can earn, and much more.

The content of the article:

What is an investment fund

Investment fund- is an organized financial structure ( company), which professionally manages the funds of other investors, as well as its own. The scheme of operation of such a fund is very simple:

1. An organization (fund) is created with a certain authorized capital from the founders;
2. Small investors contribute funds that are accumulated in this fund into a single portfolio;
3. The portfolio is managed by experienced managers or a team of managers who analyze the market and execute trades;
4. The fund's profit or loss is divided among investors in proportion to the funds invested.

Some types of funds may charge commissions or fees to managers, but not all.

How much can you earn from investment funds?

It is impossible to answer this question unequivocally, since there are many different funds that are divided by market, type and asset. But to understand how much you can earn from investment funds, below we will show different examples of funds and their profitability.

On average, with reasonable diversification of investments and the absence of adventures, many investors consistently earn 20-30% profit per year on investments in investment funds. But this is only an average.

For example, a mutual fund Balanced", consisting of mixed investments in Sberbank, has shown growth of 56.88% over the past 3 years:

Considering that this fund includes, in addition to stocks, also bonds and other conservative instruments, the risk-return ratio is quite justified.

Types of investment funds

Today there are the following key types of investment funds:

• Mutual funds- a very popular investment option, actively promoted by large banks. The entire US economy or 90% of Americans have investments in . This is similar to mutual funds, only investors buy shares in the form of shares on the stock exchange.
• Hedge funds- a well-known but less common type of fund. It is characterized by weaker regulation by law and is not available to a wide range of people. For example, in US hedge funds, the initial contribution for an individual starts at $5 million. There are such funds in offshore zones, where the requirements are more lenient, starting from 100 thousand dollars and less.
• ETF funds- an exchange-traded fund whose shares are traded on an exchange. Usually copies the dynamics of a stock index or a specific sector.

As for the latter, there are complex solutions that include several ETFs at once. An example of such a fund is Global ETF:

Over the past year, this fund has earned investors 21.44% profit, which is a decent indicator for an ETF direction.

In Russia, Mutual Investment Funds (UIFs) are the most widespread, they have easy access, and ready-made investment solutions are offered in the largest banks. As a result, the most interesting and useful classification for an investor seems to be depending on the strategy used and the type of instruments purchased:

• Equity funds- those who purchase exclusively shares on the stock exchange.
• Bond funds- The same applies to bonds.
• Real estate funds- purchase commercial real estate.
• Cash funds- operate with minimal risk, placing part of the funds on deposit, and the other part in highly reliable bonds.
• Mixed funds- use different strategies and trading tools.

The division of funds is not limited to this. They can be divided depending on economic sectors (telecommunications, natural resources, financial, consumer sectors, etc.).

Equity funds

As the name suggests, such funds focus on buying stocks. In general, there are many types of shares on stock exchanges, which are divided by sector, country, but first of all they are divided by capitalization:

• Small cap companies- turnover up to 500 million dollars, as a rule, these are new and small enterprises that have recently appeared on the stock exchange, they are more risky and adventurous, but can also bring considerable income;
• Mid-cap companies- turnover of 500 million - 5 billion dollars, more advanced organizations that have managed to gain authority in the market are represented here;
• Large Cap Companies- turnover over 5 billion dollars, and these are the largest companies, giants with famous brands and maximum reliability.

For example, the fund of shares of small capitalization companies in Sberbank implies a high level of risk, over three years they have grown by 48,76%:

In general, the high level of risk does not justify such returns, but our task is to illustrate that there are funds that specialize specifically in small companies and their shares on the stock exchange.

Many will be interested in the American market or other countries; there are interesting solutions in this direction, namely the AllStocks fund. It includes stocks from companies around the world, providing maximum diversification.

Fund managers have earned 10.56% over the past year, which is quite reasonable for the low level of risk and number of instruments.

Bond funds

Working with bonds is characterized by minimal risk and fixed income. This is the key advantage of such funds, but this also leads to an important disadvantage - relatively low profitability. There are different classifications, but among most funds three types are common depending on territoriality:

1. Bond funds of Russian issuers;
2. Eurobond funds;
3. Global debt market funds.

For example, the Alfa Capital bond fund has earned 289,17%:

As you can see, the yield curve when investing in bonds is characterized by the absence of sharp drawdowns (falls) even during the crisis, when compared with stocks, which lost in price over 50-70% in 2008. Growth is relatively stable, which is what attracts most conservative investors to such funds. When compared by capitalization, bond funds are significantly superior to stock funds.

Real estate funds

Another investment direction among funds that purchase commercial real estate and also invest in the construction of facilities. Such funds exist not only among mutual funds, but also as a separate category.

For example, there are REIT funds (from English "Real Estate Investment Trust"), they are aimed at acquiring foreign real estate. One of these funds is New York Mortgage Trust, its yield is 15.49% per year, despite the fact that the investment is made in US dollars.

Among ruble funds, one can cite as an example real estate mutual funds. Below is the fund " Residential property 2" The share price chart itself looks unprofitable, but you need to take into account payments every six months to shareholders:

The reported payments were as follows:

• for the second half of 2014 47.1 rubles per share;
• for the first half of 2015 77.5 rubles per share;
• for the second half of 2015 76.8 rubles per share;
• for the first half of 2016, 85.7 rubles per share;
• for the second half of 2016 60.2 rubles per share;

Thus, the fund pays out approximately 10% per year, but the shares also fall in price. To catch profitability from such a mutual fund, you need to invest long-term - at least 5 years, or sell everything before prices drop.

Cash funds

As already noted, such funds keep part of the funds in deposits of the largest banks (usually 50%), the rest in very reliable bonds. Such conservatism is achieved through a minimum income.

As an example, let's take the fund " Monetary» in Sberbank. There are no profitability graphs; they are not required here, because profits are usually stable. The declared income for this fund is 6.5% per year, with the return on a classic deposit being 3-4.5%.

Mixed funds

Mixing involves the use of several strategies related to both bonds and stocks and money markets. In some cases, other assets are added to such funds ( real estate, precious metals, etc.). Most mutual funds are mixed.

Here is an example of the structure of one of the mixed funds of Alfa Capital - “Balance”:

The fund's return is approx. 15% per year, since its founding in 2006 it has amounted to 94% ( taking into account the crisis in 2008).

How to choose an investment fund

So, we looked at many types of funds, their features, and profitability. Now let’s pay attention to how to systematize all this and how to choose an investment fund that will be ideal for you. To do this, follow the following instructions:

1. Define your goal- it is important to understand what you want to get, what kind of profit, its size. If stability is important to you, and you are not willing to take risks for the sake of huge profits, then you should opt for bond funds or even money funds, if on the contrary, then in favor of stock funds.
2. Calculate the amount and terms- at this stage, different investment options often disappear. For example, investments in real estate funds often involve a fairly large amount over a long period of time. If you plan to deposit money for a year or two, then you should pay attention to stocks or bonds.
3. Choose a management company- here, it is important that you decided in the previous steps. For reliable investments, it is better to choose large banks and mutual funds (Sberbank, Alfa Capital, VTB, etc.), there are quite good options for bonds, as well as Russian stocks. If you want a larger income with increased risk, then you should turn to foreign companies, for example, where there are interesting funds with American stocks or cryptocurrency. Naturally, you should only invest in reputable organizations, so do your research on the company you'll be dealing with.
4. Study all the nuances about the selected funds- it is very important. If you make a mistake, you will have to withdraw money, pay commissions and lose precious profits in order to invest money in investment funds of another organization. It’s better to study everything well in advance; it wouldn’t hurt to consult with support or specialists.
5. Deposit funds and expect profit- at this stage you need to calm down and wait. Patience is the main criterion for the success of any investment, so do not panic if the fund has a slight drawdown in a month. Since you have studied everything, at the end of a year or two it will still be a plus.

If you follow the above steps and choose reasonable goals, you are sure to make a profit from your investment.

Advantages and disadvantages of investment funds

Before deciding how much and how to invest in an investment fund, you should also study the positive and negative aspects of funds in general.

Advantages:

• Professional money management - you don’t need to make decisions about purchasing assets, a team of specialists who carefully study the market will do it for you. This is their job, they spend many hours every day. In many cases, their decisions are much smarter than those of a solo investor who spends 10 minutes on the market.
• Wide diversification for a small amount - by investing in a fund, you get a share in a variety of instruments (stocks, bonds, real estate). With a similar amount, for example, 100,000 rubles, you would not be able to buy such a number of assets.
• No large commission costs for the broker - this is especially true for the American market, where it is quite difficult to cover the commission if you buy shares yourself. Funds have large capital, as a result, they have special conditions when purchasing assets, and as a result, you do not need to pay any commissions.

Flaws:

• Managerial remuneration - often funds provide remuneration for employees in the amount of a small percentage of profits. As a rule, this is not significant, but it is still present.
• Lack of flexibility - funds are usually always buying and cannot legally go short. This does not apply to foreign (offshore) funds and hedge funds; this is more typical for mutual funds. As a result, funds always have a drawdown during a crisis, since they do not sell off assets, as other investors do without limited rights.

As you can see, for the most part, mutual funds provide great benefits for the investor. Their disadvantages are incomparable and not so significant in comparison with the opportunities they offer.

Conclusion

Investment funds are organizations that professionally manage investors' funds. There are hundreds of different types of funds, some invest only in stocks or economic sectors, others work with bonds, real estate, and precious metals. Each option differs in the degree of risk and potential return.

To choose an investment fund wisely, you need to consistently decide on the goals, the amount and choose a worthy company. In general, such investments have significant advantages over individual work with investments, since they imply professional management and wide diversification.

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Over the last twenty years, mutual investment funds have found wide popularity in Russia and have developed quite significantly. Each mutual fund differs in its operating scheme and offers shareholders a wide range of returns, depending on the risks. The greater the return a mutual fund offers, the greater the risk the fund's client should expect, but this is not always the case. In general, mutual funds have proven themselves to be a very good type of investing money, attracting an increasing number of people over time.

The amount of the minimum contribution usually varies from several thousand to several hundred thousand, depending on the audience of investors the investment is intended for. fund. The most popular investment funds allow you to make a minimum contribution, starting from several thousand rubles, but there is usually no upper ceiling. If the holder of a share (a security certifying the holder's right to part of the fund property) wants to withdraw his funds, this can be done by selling the share.

The legislation of the Russian Federation prohibits mutual investment funds from advertising the expected income to future shareholders, promising them untold profits. The effectiveness of a mutual fund can usually be seen from published past results; on their basis, the investor draws conclusions about whether it is worth investing in this fund. Obviously, the most popular funds are those that stay afloat for several years and do not allow their investors to lose their share contributions.

Answering the question of what mutual funds are in general, you can get by with just a couple of words. A mutual fund is an association of several investors, whose funds are invested by a specialist manager in securities. Income grows based on changes in the value of the security and can vary within a range with no upper limit. Since there are risks of paper depreciation, each mutual fund strives to reduce its dependence on such securities by investing investors’ funds in multiple sources of income at once, that is, diversifying investments. More about everything below.

What is a mutual fund?

From a legal point of view, a mutual investment fund can be defined as a property complex without the organization of a legal entity, built on the trust management of the property of the mutual fund by a specialized management company (a management company - the brain of the entire fund) in order to increase the value of the fund’s property. An increase in the fund's assets is achieved by investing money in certain industries - technology, stocks, bonds, real estate) Thus, such a fund is formed from the money of investors (shareholders). Each investor owns a specific number of shares in the fund's property. An investment share is a security owned by an investor, which certifies the owner’s right to a specific share in the fund’s property. One investor can have several shares at once. Thus, an investment share also grants its owner the right to receive funds from the mutual fund corresponding to this share. The share in the property of an investment fund depends on the size of the share contribution, the minimum amount of which varies widely, but in open-ended funds it is usually several thousand rubles.

Several organizations participate in the work of the investment fund. The brain of the entire fund is the management company. It is she who is responsible with her property for the slightest violations on the part of the fund. All transactions are carried out there and when suspicious transactions appear, everything is blocked by the depository.

The second participant of the fund is a specialized registrar. It takes into account the rights of investors (shareholders) to part of the property in a mutual investment fund using a special register. This register records all information about the owners of shares and their share in the property of the fund.

The third participant is the auditor. He monitors the correctness of the management company’s reporting, making sure that the reporting is structured according to all the rules. All auditors are licensed by the Ministry of Finance.

Advantages of investing in mutual funds

The effectiveness of a fund’s investments can be assessed by past achievements, but investment funds in Russia are prohibited from advertising expected returns. The head of the Federal Financial Markets Service of the Russian Federation spoke about this, pointing out the similarities between stock trading and mutual funds and stating that shareholders (fund investors) must withstand up to 50% of fund losses without panic.

When assessing a fund's performance, it is common to compare actual returns with potential returns.

Each fund is checked by the state for the presence of certificates from the Federal Commission for the Securities Market from specialists. The investor does not trust his investments to incompetent specialists, but invests them in the management of competent and professional managers. Also, each of the funds goes through a fairly strict licensing process. Moreover, control on the part of government agencies is carried out even during the operation of the fund, but sometimes this is also the disadvantage of investing in mutual funds, because often the state limits what stocks and bonds the fund manager can buy, thus minimizing risks, but relieving investors from opportunities to get high interest rates. The winners here are rather private investors who are not limited in their freedom to invest clients' money.

According to many experts, mutual funds are a more profitable investment option than bank deposits, so when considering investments, always think about investment funds.

Mutual funds guarantee higher returns compared to the typical investment instrument of the majority of the population - bank deposits. Often, the risks even come close to the risks of bank deposits, because even in moments of unprofitable operation of the fund, the depositors’ money is not burned, but is transferred to another management company.

The most popular investments in Russia. the funds have a low entry threshold, starting from 1 thousand rubles, despite the myths that you can invest in such funds from almost hundreds of thousands of rubles. The upper limit is not delineated.

Today, according to the National League of Managers, the net asset price of all existing mutual funds in Russia is approximately 500,000,000,000 rubles. Of these, open funds own 104 billion rubles, closed funds 365 billion, and interval funds 38 billion rubles. The number of operating mutual funds is approximately 1100, the number of emerging ones is 19, and the number of management companies is 287.

Advantages of investing in mutual funds

• Your money is managed by highly qualified specialists with a certificate from the Federal Securities Market Commission, and a whole staff. All this speaks of minimizing risks and reliability. The funds are also licensed and their activities are controlled by the state.
• Good investment conditions. An investor can enter the club at any time (with the exception of closed and interval types of funds) and leave it, for example, by selling a share to another investor.
• The opportunity to study the income history of most of the most reliable and popular funds. Based on previous results, you decide for yourself whether to invest in this fund.
• Preferential tax system. This means that you are not required to pay a percentage of the annual profit, although you will have to pay a fee to the fund once a year, even at times when the fund suffers losses. However, this can be considered both a plus and a minus.
• Mutual funds have earned their attention from investors over many years of operation, providing them with high returns and minimizing risks. This respect on the part of investors did not appear just like that, but is supported by actual results. Definitely, mutual funds should be considered when deciding whether to invest available funds.

Disadvantages of investing in mutual funds

In the Russian Federation, this type of organization has been operating since the mid-90s and since then they have been able to earn the trust of people as one of the effective investment options with a risk-return ratio. However, as with any other type of investment, you should carefully study the information about the fund where you want to invest your free funds, because there are great risks. Mutual funds do not belong to instruments with a fixed profitability and a statutory return of funds if the fund loses them. Bank deposits with a fixed annual return or investing in high-rated bonds are more suitable as such an instrument.

When investing money, you should not count on instant profits out of thin air. Investing in mutual funds is a choice for the patient, just like bank deposits. In fact, high returns are only ensured in the long term; often you have to wait up to several years before getting high profits.

However, it is worth noting that there are mutual funds that invest exclusively in bank deposits and high-rated bonds. This type of fund has a low degree of risk due to its diversification, even in comparison with many bank deposits.

As mentioned earlier, the actions of the fund are constantly monitored by government agencies and they often impose restrictions on the purchase of bonds and shares by the management company. This step minimizes risks, but limits investors' ability to obtain large returns in a short time. In this regard, the alternative is a private investor, who is in no way limited in the freedom to manage the money of contributors.

Taking this into account, we can note the main disadvantages of mutual funds:

• Presence of risk. Yes, you rarely find stability and reliability in life, but it’s not for nothing that most people prefer bank deposits to mutual funds. Each of the investors can make good money, or earn nothing, and, least of all, lose money completely.
• Mutual funds are organizations that generate income over a fairly long term, within a few years.
• Funds do not work for free and sometimes you need to pay a fixed commission. Even when the fund suffers losses.

What are the types of mutual funds?

The variety of types of mutual funds should be considered based on several criteria:

• Degree of accessibility (openness).

There are 3 types of funds: open, closed and interval.

1. Open-end funds operate and operate every working day, the most public and popular type of funds with the lowest entry threshold. Investment units are distributed and redeemed every business day. The main assets of open-end funds are usually securities and shares with high liquidity, that is, those that can be quickly sold at a price close to the market. "Liquid" means flowing into money.
2. In closed-end funds, shares are issued during the formation of the organization, and are redeemed only after the end of its operation. Most often, such funds are organized for specific projects. Today, this type of fund has the highest total asset value. Most often they have the most favorable offer for the investor, but the number of shares is limited.
3. Interval funds accept mutual contributions at specific time intervals, usually two or three per year within two weeks. Here, the main assets are the opposite of open ones - securities with low liquidity.

• Direction of investment.

This point is a little more complicated.

Based on the direction of investment, the funds are divided into:

• Money market funds - invest funds primarily in short-term deposits - bills, certificates of deposit, etc.
• Bond funds - invest in bonds and, most often, government bonds as they are the most reliable. Bonds provide a company with monthly income.
• Equity funds are a fairly popular type of investment, as stocks can provide high returns. There is a high risk factor, since the value of shares fluctuates greatly depending on the market situation.
• Mixed investment funds - There is no need to explain much here; such funds use bonds, stocks, and certificates of deposit in their work. The advantage of these funds is both reliable monthly income from bonds and high returns with greater risk from stocks.
• Funds of funds - contributors' funds are invested in other funds, thereby minimizing risks and reliable income.

It is worth noting that there are several other popular related types of funds.

Pensioners who invest in stocks and bonds. The length of investment time depends on the age of the investor. Such funds provide up to 10% per annum after the investor retires.

Guaranteed funds that invest only in areas that bring high returns with minimal risks. Provides very large returns over really long investment periods (5-15 years)

There are many other types of funds related to their investment areas, but they are not worth considering all of them, since they are quite rare.

Rating of the most profitable mutual funds in Russia

1. April Capital - shares of commodity companies. Growth from 03/31/17 to 03/31/18 - 39.47%
2. Sberbank - Global Internet. Growth from 03/31/17 to 03/31/18 - 38.53%
3. April Capital - shares. Growth from 03/31/17 to 03/31/18 - 34.57
4. Alpha - Technology Capital. Growth from 03/31/17 to 03/31/18 - 32.05%
5. VTB - BRIC. Growth from 03/31/17 to 03/31/18 - 30.90%
6. RAIFFEISEN - information technologies. Growth from 03/31/17 to 03/31/18 - 31.03%

Subsidiary funds of the same management companies were not repeated.

Just based on this list, you can make a smart investment that will bring you hundreds of percent per annum in the long term.

If we consider management companies, then in first place will be subsidiary funds, the organizer of which is Sberbank. This is a choice for those looking for a safe, low-risk investment. The maximum yield here is 25% per annum.

The second place is occupied by mutual investment funds managed by the German company Raiffeisen. The middle segment in the “Risk-return” ratio. The average return over the year is approximately 40%.

Third place in the TOP of funds of the best management companies is occupied by a group of subsidiary funds of the Trust Investment Company. The profitability is 50-60%, and the operating period of more than ten years deservedly attracts the attention and popularity of this company.

When choosing a mutual investment fund, always try to study its performance history as much as possible. Obviously, you should give preference to organizations that have been operating in the market for more than 5-10 years. Young funds form and disappear at high speed, but only a few remain afloat. Often, young organizations offer investors more favorable interest rates. This can either play into the hands of the investor or play a cruel joke on him,

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.

What is an investment fund and how many are there?

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, an investment fund can purchase securities on favorable terms 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

• mutual investment funds (share funds),
• stock exchange,
• money market funds,
• hedge funds...

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.

At every decent job in the United States, companies pay pension contributions for employees, while 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 low and protected risk. This is how retirees 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.

How investment funds work in the world and in Russia

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 investment periods, for example, you can redeem the 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.

• Ratings, details, performance statistics and share prices of mutual funds can be viewed on TheStreet and moneycontrol.

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 profit of the funds is not stable and if you invest for 3-5 years, then you should look at the profitability not of the last year, but 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:

• Invest only in funds whose activities are easy to understand. If the work of a fund is too complex to quickly and concisely explain, this is the first sign that specific schemes are involved. It's better to stick to organizations that operate more simply
• Rely on periods of 5 years or more. High-yield funds are great, but betting on high-volatility assets isn't always a wise decision. Even the famous one called for using the least risky management strategies, which allow you to slowly but surely increase your capital.
• Pay only justifiable expenses. Tax efficiency, estimated net income, possible risk factors - all this must be weighed against each other, constantly making sure that the profit more than pays for all expenses.

How to invest in an investment fund and earn money

Like most other 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 affordable and best options for citizens RF And CIS. For example, in Russia there is a law on investing 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, all 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.

• The minimum deposit for Finam is only $200 .

One of the main advantages of collective investment is minimal 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 a low percentage of profit, 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 reinvestments and you will understand how pension funds work in the USA and why are they so rich.

Advantages of investment funds

Having learned what an investment fund is, it would be useful to emphasize its main advantages:

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What are mutual funds and what are their types? How to choose the best checking investment fund? What features does a closed-end foreign investment fund have?

Hello, dear friends! Denis Kuderin, investment expert, is in touch.

Our new topic is investment funds, a tool that will help you save and increase your finances without much effort.

The article will be useful to everyone who is interested in passive income and wants to make investing a profitable business.

And now first things first!

1. What are investment funds and what are their functions?

Surely you have already heard or seen the abbreviation “unit investment fund” in articles on financial topics. So, it is about mutual funds - Mutual Investment Funds - that we will talk today.

In a broad sense, investment funds are forms of collective investment, property complexes with different structures.

Funds are joint-stock companies or organizations with shared ownership of participants, which are united by a common essence - collective ownership of assets.

A few words about why mutual funds are needed in general. Their long-term and priority goal is to preserve and increase the capital of participants.

The existence of investment companies is due to the fact that a large number of citizens with savings do not always have the skills to invest funds competently. During the period of economic stabilization, the number of funds increases; during a crisis, the activity of such organizations declines.

The fund's operation scheme is extremely simple:

• participants (shareholders) contribute their share to the common pot;
• managers invest money in promising financial projects (securities, real estate, gold, venture funds, etc.);
• the profit received from turnover is distributed among shareholders according to the contributed shares.

Mutual investments are classified as highly liquid assets. A participant can realize (sell) his share at any time if he considers that it is profitable or he simply needs cash.

Another plus is that investors’ funds are managed by professionals, which significantly reduces financial risks. Managers know which investment areas are most profitable at the moment and use their skills in successful financial investments.

The average investor often does not have the time, knowledge, or abilities for competent financial management. Therefore, a professional player takes care of increasing the welfare of shareholders.

To better understand the principle of operation of mutual funds, I will give a clear example.

Example

Ten friends decided to start farming and purchased a large plot of land. To ensure that resources are used with maximum efficiency, they hire an experienced farmer who is skilled in agricultural work.

In the fall they harvest. They give approximately a tenth of the harvest (or profit from its sale) to the farmer, and divide the rest among themselves. The more effective the specialist’s work, the more both the owners and the farmer himself will receive. This is how mutual funds work.

Management companies are vitally interested in the proper placement of capital, because the size of their remuneration directly depends on this: they receive commissions on profits.

Let's list the main advantages of investment funds:

• professional asset management;
• diversification of deposits – risks are reduced by investing in different investment instruments;
• minimal costs for financial transactions;
• transparent internal structure;
• large joint capital brings more profit than small individual deposits.

And a small fly in the ointment: mutual funds do not guarantee mandatory income for their participants. As with any other investment transaction, there is a risk of loss of funds associated with unsuccessful investments, market declines and other objective factors.

And although the activities of the funds are controlled by the state (in particular, the FCSM - the Federal Securities Market Commission), there are no legal requirements regarding the profitability of such structures.

2. What are the types of investment funds - TOP 5 main types

Now about what types of mutual funds there are. There are several criteria for classifying stock organizations.

According to the type of availability for deposits, they are divided into:

• open;
• closed;
• interval.

Open, as the name implies, practice free sale and purchase of shares. That is, you can become a co-owner of a company at any time, provided, of course, there are sufficient resources to purchase a share.

The total amount of capital, as well as the number of participants in open funds, is not limited. Such structures usually invest in highly liquid and reliable financial instruments.

Closed funds sell shares of participants immediately after the establishment of the organization, after which sales of shares cease. Closed-type mutual funds are limited in terms of their work, which are agreed upon in advance.

Often such funds specialize in a particular industry. For example, they work only with the real estate market or invest assets in innovation.

Feature interval Mutual funds are that the sale of shares and their redemption occurs at certain periods of time. Typically, interval funds work with stocks - they are engaged in professional exchange trading.

Another classification criterion is by area of ​​investment. We will consider in detail the species that differ in this characteristic.

Type 1. Equity funds

The most popular type of mutual funds. The purpose of such a fund is to make a profit from investing in shares of various companies.

Since manufacturing (and any other) companies differ in the amount of working capital, mutual funds are also divided into those that operate:

• with small enterprises (turnover - less than $500 million);
• medium (from 500 million to 5 billion dollars);
• large (turnover – more than $5 billion).

The last type of investment is the most reliable, but is designed for a long period (3-5 years). High-income companies that are leaders in their industries are called “blue chips” by investors. The net profit from deposits in shares of large corporations is 10-15% annually.

Obviously, when choosing a fund, you should take into account both the size of your own investments and the operating principles of the mutual fund. Some institutions prefer to work with stocks that are characterized by rapid (and not always predictable) growth, while others choose more stable partners.

Another piece of advice from experienced investors is that you shouldn’t put all your eggs in one basket, that is, don’t limit yourself to one fund. If finances allow, it is better to create a “portfolio of funds”, which will include shares in several organizations, different in their structure and focus.

Type 2. Bond funds

Bonds are investment instruments with a fixed income (this is their difference from shares, the value of which is constantly changing).

Funds that invest exclusively in bonds are called bond funds or bond funds.

Investments of this type bring regular dividends to investors - interest on deposits and profit from the difference in prices are summed up. The net profit of bond funds is low (from 6-8%), but the risks are minimal.

Depending on who issues the securities, bond funds are divided into:

• state (federal);
• municipal;
• corporate.

Government bond funds are considered the most reliable. Papers issued by regional governments are also popular.

Corporate bonds are a risky, but in case of a successful combination of circumstances, a very highly profitable investment instrument.

Type 3. Real estate funds

Such organizations receive income from contributions to the construction and operation of real estate. Institutions have different specializations - some funds sell houses and apartments, others rent them out, and others specialize in operations with land plots.

Usually these are closed-end funds: this feature is due to the fact that housing (especially acquired at the construction stage) takes longer to be sold than, say, liquid shares of the Coca-Cola company.

Considering the high cost of housing, the minimum initial share contribution of a participant to such funds is quite impressive - approximately $10,000.

A type of real estate fund can be called mortgage funds - closed organizations that make money on mortgage securities.

Type 4: Money Market Funds

These are the most conservative mutual funds in the world. Their essence is that managers keep 50% of the participants’ assets on deposits, and only the second half of the money is involved in current investment operations.

Finance is invested in the most reliable instruments - bonds, currency. Experts consider money market funds to be an alternative to short-term bank deposits. The risk of losing deposits in such institutions is minimal, as is the profit of depositors.

Type 5. Balanced (mixed) funds

It is easy to guess that such funds work with various instruments. Typically these are bonds and stocks: the most liquid types of securities.

Mixed fund management tactics require experience and special knowledge from the management company. Market experts must constantly analyze the situation, buying and selling securities at the moment of their most profitable value for shareholders.

The table shows the main types of funds and their basic indicators:

№	Types of funds	Profitability	Investment Features
1	Equity funds	From 10% and above	Relatively high risks
2	Bond funds	6-8%	Low risks
3	Real estate funds	From 7-10%	Designed for long-term investments
4	Money Market Funds	7-10%	Reliability and low risk
5	Mixed	From 12% and above	Requires competent management

3. Features of check and foreign funds

A few words about less popular, but also noteworthy types of investment funds.

Foreign funds allow you to invest your savings in foreign and international companies.

Such mutual funds are divided into:

• global(allow you to get rich by investing in the economies of other countries);
• international(engaged in investments outside the shareholder’s country of residence);
• developing country funds(risky but promising investments in the economies of developing countries).

Foreign funds, like any other, can be open or closed. In total, there are about 50 thousand funds in the world that are open to foreign investment.

What's happened checking investment funds(CHIFs), everyone who lived in Russia in the 90s remembers. These structures were engaged in helping citizens manage voucher checks during the period of general privatization.

In the mid-90s, the number of CHIFs in the Russian Federation numbered in the hundreds. The further fate of such companies is gradual merger, mutual absorption, reorganization and bankruptcy. Currently, the vast majority of check funds have been liquidated.

4. How to choose an investment fund - 5 simple steps

The correct choice of investment fund directly affects the size of your profit and the safety of capital.

To begin with, I advise you to decide on the purpose of the investment. What kind of income do you need - fast, reliable, constant? Depending on your end goal, choose the type of fund.

The timing of investment, amount, and attitude to risk are also taken into account. Remember that mutual funds do not guarantee a fixed profit: success depends on many factors - market conditions, professionalism of the management company, economic situation in the country.

Now - a step-by-step guide for novice investors.

Step 1. Determine the amount and period of investment

The most important stage is determining the size of the deposit and investment terms.

The smaller the amount, the narrower the range of available options. Solid capital opens up wide opportunities.

Decide right away what deadlines suit you. Turnover periods are also different for different types of funds. Thus, real estate investments involve long-term investments. In stock and bond funds, funds turn over faster, but the risks increase.

Step 2. Decide on the type of mutual fund

For capital holders with no investment experience, the best option is open mutual funds with high liquidity of share shares. Participants in such funds have the right to withdraw their capital from circulation at any time. Interval mutual funds sell shares annually or monthly.

Experienced investors who know how to balance risk with return use more specialized tools. For example, they invest in real estate funds, venture capital and mixed funds.

Step 3. Select a management company

Management companies rarely engage in direct deception of investors. They do not do this, if only because they are afraid of breaking the law, which prohibits making unreasonable promises to investors.

There are also active And passive deposits.

In the first case, the investor can personally control the state of his investment portfolio:

• deposit/withdraw funds at any time;
• keep a balance;
• perform other manipulations aimed at achieving maximum profitability.

Such operations make it possible to conduct open-ended funds.

If you want to invest your money in a share and forget about it for a while, choose closed-end funds or interval funds.

Step 4. Compare ratings of different funds

Ratings of mutual funds are publicly available on various information resources. It is better to use several sources and compare their performance. The pages of financial departments and government bodies enjoy the greatest authority.

There are many criteria that characterize the profitability of funds and the principles of their work - the volume of attracted capital, liquidity indicators, various financial ratios.

Step 5. Making the final choice

The final choice is made after a comprehensive analysis of the fund and management company. If doubts remain, I recommend consulting with experienced people or visiting thematic investor forums.

For beginners, the fundamental factor is usually the stability of the mutual fund and its popularity among other investors. But following the majority opinion does not always guarantee success.

5. What to look for when choosing an investment fund - useful tips for beginners

In general, mutual funds are reliable and affordable investment instruments. The activities of such institutions are extremely transparent, which is due to legal requirements and customer focus.

When choosing a fund, pay attention to the following indicators:

• risk level (low, high, medium);
• work period;
• minimum share size;
• availability of discounts, allowances and other benefits for shareholders;
• volume of funds raised;
• net asset value;
• profitability (consider a long period, not just the last months);
• conditions for the exchange and sale of shares.

Knowledgeable people recommend choosing mutual funds by elimination, starting with the type of company and ending with an analysis of financial ratios. The more information you collect about the fund’s operation, the safer and more profitable your investments will be.

6. The best investment funds - TOP 7 companies in Moscow

There are hundreds of mutual funds operating in the Russian Federation with different management structures and profitability. In order not to get lost in the ocean of mutual funds, we have selected 7 of the most reliable and profitable companies in the capital.

Territorial affiliation with the Moscow region does not mean that residents of other cities cannot become shareholders of these funds. They can - the Internet allows you to invest funds remotely and withdraw them to your accounts in the same way.

SotsAgroFinance(production and financial company) – professional investments in precious metals, retail jewelry, mining.

The company attracts private investment to finance its own highly profitable commercial projects. Investment agreements with individuals have a fixed interest rate. The company's prospects include increasing production turnover.

Finance-Invest is the oldest investment company in the Russian Federation, operating since 1995. Specializes in developing markets of Russia and neighboring countries. The management core of the company has been working in the field of profitable investments for more than 10 years and is constantly strengthening by attracting professionals from international and Russian commercial banks.

Finance-Invest is committed to developing the most current technologies related to servicing, information and technical support for investors.