A mutual fund allows participants to earn income from investing in securities, real estate and other assets. The main feature of investing in mutual funds is the low level of risk compared to investments in stocks and bonds. The investor acquires a share in the fund's property, while the fund itself is managed by a separate company - a professional market participant. If you have chosen the right mutual fund and management company, there is nothing to worry about: you will be able to receive a stable income and increase your savings. Read below about all the nuances of the work of mutual funds in Russia and their classification.

Mutual funds - definition, basic operating principles

The definition of mutual funds is given in Law No. 156-FZ of November 29, 2001 “On Investment Funds”. According to the regulatory act, a mutual fund is a separate property complex consisting of property transferred to the company by the founder with the condition of combining this property with the property of other founders, as well as property received as a result of management itself. The share in the ownership of property is certified by a security, the issuer of which is the management company (MC). To simplify, we can describe the process of the fund’s activities as follows. The investor transfers his funds to the management company, which invests them in those assets that it considers the most promising. A management company can purchase shares or bonds, invest in real estate, etc. Profit from the investment of shareholders' funds in certain assets is distributed among the participants of the mutual fund in proportion to the number of shares. The investor has a security that confirms his right to receive part of the fund's property.

Investing in mutual funds is beneficial for those investors who do not have sufficient knowledge about financial instruments, and therefore are afraid to make decisions on their own regarding investing in stocks, bonds and other assets. In addition, you can invest in mutual funds with even a small amount of savings - from 1000 rubles or more.

Pros and cons of investing in mutual funds

The main advantage of investing in mutual funds is relative safety: the activities of the management company are controlled by government agencies. In addition, the funds and assets of the fund are separated from the property of the management company, therefore, even its bankruptcy will not cause harm to the participants of the mutual fund. Investing in a mutual fund is also tax advantageous. Investors pay income tax only when leaving the fund, regardless of changes in the value of the investment portfolio.

At the same time, speaking about the “pros” of such investment, one cannot fail to mention the “cons”. In fact, the management company plays the role of an intermediary, and for its services it charges a certain fee, which does not depend on whether the private investor received a profit or loss. There are 3 types of management remuneration possible:

• premium when purchasing a share (up to 1.5% of the cost of the share);
• discount when selling a share (up to 3% of its value);
• percentage of the fund's net asset value (from 0.5 to 5% per annum of the asset value).

By law, mutual funds are prohibited from advertising expected returns: they have the right to show only their previous results, on the basis of which investors can draw appropriate conclusions.

To understand which funds you can choose for investing, it is important to understand their extensive classification, which we will discuss below.

Classification of mutual funds

Mutual funds are classified according to several principles. Depending on the method of buying and selling shares, there are 3 types of mutual funds:

1. Open: The management company has the right to sell and buy shares at any time, therefore, investors can invest and withdraw their funds when it is convenient for them.
2. Interval: the redemption and sale of shares are carried out only at specific, pre-agreed periods. For example, during the week 4 times a year.
3. Closed (for example, mutual funds investing in real estate). A share can only be sold at the end of the fund's life.

Open-end funds keep their assets in a highly liquid form: they invest in government securities (at least 35% of total assets must be bonds); into securities of other countries; in municipal and corporate securities (shares and bonds of Russian enterprises). When investing in corporate securities, the value of shares and bonds of one issuer cannot be more than 20% of the value of all fund assets. Also, open mutual funds can place investors' funds in bank accounts, but so that the share of all funds placed in one bank does not exceed 20% of the fund's total assets.

If we compare open, closed and interval mutual funds, the first ones turn out to be convenient for the investor due to the ability to freely manage their funds. However, as in the case of deposits, the maximum income can only be obtained by investing for a long term, i.e. into closed and interval mutual funds.

According to the areas of investment, mutual funds are divided into stock funds, bonds, mixed investments, money market funds, venture funds (funds investing in innovative developments), hedge funds (managed by highly qualified investors, not common in Russia), real estate funds, etc. Only qualified investors can invest in venture funds, hedge funds, private equity funds, real estate funds and credit funds (this is a condition enshrined in law). As a rule, such funds are closed. The concept of a “qualified investor” has appeared in Russia since 2007: such stock market participants can invest in riskier funds.

It's no secret that recently the population has been actively encouraged to invest in mutual funds: not always in large ones and not always in reliable ones, more often - highly profitable ones, allowing them to receive a profit of 50 to 100% per annum. We will talk about whether you should trust such promises and how to choose a fund to invest in in the next article.

According to the law, there are 3 types of mutual investment funds: open, interval, closed.

Open-end fund units can be bought and sold on any working day. In this way, an open-ended investment fund can expand or contract over time without the need for a series of shareholder meetings to obtain approval for increases or decreases in capital. The funds of open-end fund shareholders are invested in highly liquid assets.

The main difference from an open-end mutual fund is that shares can be bought/sold not on any working day, as in an open-end fund, but only during certain periods of time, which are called intervals. Most often, such intervals are announced once a quarter.

A characteristic feature of the fund is that an investor can buy shares only upon formation (or additional issue), and present the share for redemption to the management company only upon expiration of the fund trust management agreement. This fund has a fixed number of shares. The creation and issue of additional units or the redemption of units generally requires the consent of shareholders. In addition, if this is indicated in the PDU, then the shareholders of such a fund can regularly receive income from trust management. The inability to repay a share in a short period of time makes it possible for the management company to invest the fund’s property in low-liquidity assets, for example, real estate, mortgages, and venture projects. In addition, closed-end mutual funds do not pay property and profit tax; shareholders pay income tax only when the share is redeemed.

Mutual funds can be converted from closed to interval, and from interval to open

Let us separately highlight a special group of mutual funds - for qualified investors. These funds can be either closed or interval, and investment units are limited in turnover. In addition, disclosure of information, much less ownership of shares, by persons who are not qualified investors is not permitted. However, shares of funds for qualified investors are traded on the MICEX and RTS exchanges, but trading takes place in special closed modes.

According to the “Regulations on the composition and structure of assets,” there are 15 categories of mutual funds: shares, bonds, mixed, index, funds, cash, commodity, hedge, real estate, rental, mortgage, direct investment, venture, credit and artistic values. Please note that some categories are intended only for qualified investors - these are venture capital, private equity, credit and hedge funds.

Open	Interval	Closed
shares	shares	shares
bonds	bonds	bonds
mixed	mixed	mixed
index	index	index
money market	money market	money market
funds	funds	funds
	commodity market	commodity market
	hedge fund	hedge fund
		real estate
		rental
		mortgage
		artistic values
		credit
		venture
		direct investment

- the most popular category for private investors; these funds account for the largest share of the open-end mutual fund and individual mutual fund market. At least 50% of the mutual fund's assets must be invested directly in shares for at least 2/3 working days per quarter. In addition to stocks, the portfolio may also contain bonds, but not more than 40%

Traditionally considered a safe haven during market downturns. Debt instruments must be at least 50%, but the share of shares should not exceed 20%.

They occupy second place in popularity and are a cross between the above categories of funds. The ratio of stocks and bonds can be any, but in total securities must occupy at least 70% of the fund's portfolio.

- Currently represented only by equity funds. The main difference is that the composition of the mutual fund must correspond as closely as possible to the composition of the securities in the benchmark index, the permissible discrepancy is 3%. As a rule, these funds are recommended for beginning shareholders because... It’s easy to evaluate the results of managers’ work by comparing the fund’s return with the dynamics of the index for the same period

- Along with bond mutual funds, it acts as a protective instrument. The profitability of such funds is low, but they have greater liquidity than deposits in which the funds of shareholders are invested.

- an offer for those wishing to diversify investments between several mutual funds. As the name suggests, such funds invest in other funds. The obvious disadvantage is that investors incur double costs. The advantage is that with a small investment amount, the funds are distributed among several funds.

They have been on the market since 2009 and so far there are only 3 of them. They invest in precious metals through compulsory medical insurance, and therefore are also considered by investors as a safe haven. The share of precious metals, as well as derivative financial instruments for commodities in the fund's portfolio should not be lower than 50%.

The name speaks for itself. Such mutual funds can include a wide variety of instruments: stocks, bonds, mutual funds, precious metals and, of course, derivative financial instruments.

Recently, they have become most widespread because are a convenient tool for investing in an asset of the same name. Among the advantages are tax, greater protection of the interests of investors, as well as the ability to attract other players, and finally - greater liquidity.

A type of real estate mutual funds. In them, the investor makes money, as the name suggests, by renting out real estate properties. Periodic income payments are provided. - served as an anti-crisis proposal for banks wishing to clear their balance sheets of bad debts. The credit fund involves the transfer of overdue loans to one mutual fund for subsequent management.

- one of the ways to attract investors to finance projects and promising start-ups.

- this type is similar to the venture funds discussed above, but with greater restrictions on investing funds.

Also, within a number of categories, fund specializations are also distinguished. The requirements for classifying funds into a particular specialization are not regulated by law. But, according to leading managers, it is logical that the assets in the fund correspond to the declared specialization at least 70-75%. This is especially true for industry-specific mutual funds. You can see the composition and structure of assets of open mutual fund and individual mutual fund on our website in the fund’s profile.

What are mutual funds, what is the difference between open, closed and interval mutual funds.

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Different types of investors require the formation of funds that differ in the fund management strategy and the composition of the securities that it includes. This approach allows each potential client to find exactly the Fund, the level of profitability and degree of risk in which will be optimal and acceptable for the consumer.

There is a standard classification of mutual funds, which are divided into:

• Open
• Closed
• Interval
Each of them has its own individual characteristics.

Open mutual funds

The main difference between open mutual funds can be called free circulation of its shares. They can be purchased or sold any day. The minimum steps required for this include visiting the management company or contacting agents and submitting the appropriate application. However, operations to purchase or sell shares require a certain amount of time. The period for consideration of an application and a decision on it is usually no more than 10 banking days.

Such mutual funds may be of greatest commercial interest to mobile people who have great potential for activity and are constantly looking for various new ways to invest their capital in the future. It is convenient to consolidate financial investments in these mutual funds when situations may arise that require urgent withdrawal of funds and cashing out of shares.

Closed mutual funds

The main purpose of closed-end funds is usually capital accumulation for the implementation and promotion of any project. An example is the construction of facilities and development. It is necessary to invest funds in a closed mutual fund at the formation stage, and it will be possible to withdraw them only after completion of all activities on the project. As a rule, these terms are set in advance and are at least several years.

The opportunities for managers in connection with investment activity in a closed-end mutual fund are unusually wide and, compared to similar activities in other types of funds, are incomparably free. However, this does not create the prerequisites to confidently guarantee fund participants either a certain level of income or its availability in the future.

The share of closed-end funds in the total is insignificant, since the entrance fee at the formation stage is usually an impressive amount, which not everyone can afford.

Interval mutual funds

Interval mutual funds differ from others in that they allow make various transactions with shares at certain intervals, which are installed initially. Typically, the schedule of such intervals, which are usually two weeks in length, provides for the possibility of purchasing and selling shares four times a year.

Interval mutual funds are characterized by a high level of financial risk and high potential income. This is due to the fact that the managers of such funds have the opportunity to invest the fund’s funds, not exceeding 50% of its total capital, in low-liquid securities. Such securities are characterized by significant potential financial growth along with great risk. The condition that it is impossible for fund participants to carry out operations with shares every day gives managers ample opportunities for long-term investment of funds, which can bring good dividends. In addition, this helps to achieve stability in the operation of the fund, since it does not allow participants to withdraw funds during financial market fluctuations.

For managers of interval mutual funds, the prospect of investing all available funds in securities opens up, since there is no need to have reserve capital every day to cash out participants’ shares at their request.

The main objects for investment are securities and real estate. Mutual funds have been investing funds of shareholders in securities since their creation, that is, since the end of 1996. And the opportunity to invest in real estate appeared not so long ago - the first real estate mutual fund was created in early 2003. The main types of securities are stocks and bonds. Accordingly, those funds that invest most of their funds in stocks are called equity funds, and those that invest primarily in bonds are called bond funds. It is important that the direction of investment must be reflected in the full name of the mutual investment fund, for example, Open-end mutual investment fund "Share Fund" managed by CJSC "PIOGLOBAL Asset Management", Open-end mutual investment fund of shares "Petr Stolypin" managed by CJSC "United Financial Group" INVEST”, etc.; bond funds: Open-end mutual investment bond fund “Troika Dialog - Ilya Muromets” managed by CJSC “Management Company “Troika Dialog””, Open-end mutual investment fund of bonds “LUKOIL Fund Conservative” managed by CJSC “Management Company “URALSIB””, etc. d.

It must be emphasized that this is not a mandatory 100% investment in stocks or bonds, but a preferential one. The state has established the following standards: stock funds must invest at least 50% of assets in stocks, while no more than 40% of assets can be invested in bonds. For bond funds, the opposite is true - at least 50% of all funds must be invested in bonds and no more than 40% in stocks.

This is important to keep in mind when choosing a mutual fund. Soft standards that do not require greater compliance with the declared direction of investment are explained by the fact that before the adoption of the resolution establishing such requirements, managers had the right to set the widest limits for funds - from 0 to 100%. At the same time, managers feared that excessively stringent requirements for the structure of investments in difficult moments of stock market decline, which still happen from time to time on the Russian securities market, would not allow them to quickly change the composition of assets and thus protect the interests of shareholders.

There are also funds for which there are no such requirements and the ratio of stocks and bonds in their portfolios may be different. They are called mixed investment funds. For such funds, managers can determine for themselves what share of assets should be invested in stocks and what in bonds. Moreover, this ratio may change depending on the market situation. Mixed funds can implement the most flexible investment strategy; naturally, more open-ended and interval mixed funds have been created than stock funds and bond funds, not to mention other types of mutual funds. Stocks and bonds have different returns and risks. Stock prices move much more than bond prices. Buying stocks has the potential to yield much higher returns than buying bonds, but it also carries more risk.

These important patterns fully apply to mutual funds that invest in these instruments: stock funds are more profitable and more risky, and bond funds are less risky, but also less profitable compared to stock funds. It is easy to guess that mixed investment funds occupy an intermediate position between stock funds and bond funds.

It should be kept in mind that the groups of equity funds, mixed investment funds and bond funds are not homogeneous. Within them, subgroups can be distinguished, for which the ratio of income and risk also differs.

Equity funds. Until quite recently, almost all Russian funds that invest shareholders’ funds in shares could easily be called blue-chip funds, that is, funds that invest in the most traded shares of companies on the Russian market, for example, Lukoil, Gazprom, RAO UES. Some funds remain like this today. The two funds are called that: Open-ended mutual investment fund of shares “BCS – Blue Chip Fund” managed by CJSC “Management Company “Brokercreditservice”” and Open-end mutual investment fund of shares “Orion – Blue Chips” managed by LLC “Management Company “Orion”” .

However, managers are increasingly interested in less liquid stocks (the so-called second-tier stocks), since their growth potential is higher than that of blue chips. Second-tier shares are increasingly being included in the portfolios of mutual funds, and even second-tier equity funds are beginning to appear, entirely focused on such shares, for example, the Interval mutual investment fund of shares “KIT - Second-tier equity fund” managed by “KIT Finance”, Interval mutual fund investment fund "Troika Dialog - Potential" managed by CJSC "Management Company "Troika Dialog"".

A fund manager may conclude that a particular industry has greater growth potential than others and create a fund that will invest in any of the following:

• shares of telecommunications companies (for example, Open-end mutual investment fund of shares “AVK Fund of Communications and Telecommunications” managed by CJSC “AVK Management Company “Palace Square””);
• shares of companies in the fuel and energy complex (for example, the Open-end mutual investment fund of shares “AVK Fund of the Fuel and Energy Complex” managed by CJSC “AVK Management Company “Palace Square””;
• shares of electric power industry enterprises (for example, Interval mutual investment fund of shares “Energia CAPITAL” managed by CJSC “Management Company “Interfin CAPITAL””);
• shares of companies in the financial sector (for example, Interval mutual investment fund of shares "KIT - Russian financial sector" managed by "KIT Finance".

Industry funds, figuratively speaking, put all their eggs in one industry basket, instead of putting them in different ones. If the situation for a given industry is favorable, the growth in the value of a unit of the industry fund will be higher than the average for the entire stock market. However, industry funds are also subject to greater risks, so shareholders of such funds should clearly understand this.

The so-called preferred share funds are intended to occupy a less risky niche among equity funds. The managers' intention here is that by investing in stocks with relatively large dividend payments, they can reduce the risk of a fall in their value. Examples of such funds are the Open-end mutual investment fund of shares "AVK - Preferred Share Fund" managed by CJSC "Management Company AVK "Palace Square"" and the Interval mutual investment fund of shares "Ermak - Preferred Share Fund" managed by CJSC "Ermak". True, the managers of these funds have not yet been able to form portfolios entirely of preferred shares; they have to include ordinary shares in them. For example, in the fund "AVK - Preferred Share Fund" at the end of February 2006, preferred shares accounted for 57.36%, and ordinary shares - 30.25% (13% were cash). But this is actually significant progress, since, for example, in December 2004, only one third of the portfolio was preferred shares, and two thirds were ordinary shares.

Bond funds. Specialization is also possible among bond funds. For example, there are funds that invest only in government bonds. An example of such a fund is the Open-end mutual investment bond fund “Pallada – Government Securities Fund” managed by CJSC “Pallada Asset Management”. There are also those who, on the contrary, specialize in corporate bonds, for example, the Open-end mutual investment bond fund “AVK – Corporate Bond Fund” managed by CJSC “AVK Management Company “Palace Square”” (however, actually in the fund “AVK – Corporate Bond Fund "There are bonds of Moscow and bonds of some other regions of Russia).

At the extreme risk end of bond funds are those that invest in so-called junk bonds, that is, bonds of companies in poor financial standing that may refuse to meet their obligations. Among the Russian bond funds there are those specializing in this area, these are the Open-ended mutual investment fund of bonds “High-risk “junk” bonds” managed by LLC Management Company “VIKA”, Interval mutual investment fund of bonds “Troika Dialog - Risky bonds” managed by CJSC Management company “Troika Dialog”, Interval mutual investment bond fund “KIT – Second Tier Bond Fund” managed by “KIT Finance”.

Mixed investment funds. Here, naturally, more conservative and more aggressive funds can be distinguished. More conservative funds are those that invest most of their funds in bonds. An example of such a fund is Pallada-Reserve, managed by Pallada Asset Management CJSC, the share of shares in the portfolio of which does not exceed 30%, while 70% of the portfolio is invested in bonds. An opposite example is the “Balanced Fund” managed by PIOGLOBAL Asset Management CJSC. Here the opposite is true - 70% of the portfolio is invested in stocks, and no more than 30% in bonds. Some time ago, among the mixed investment funds, one could distinguish industry-oriented funds, for example, “KIT – Russian Oil”, “KIT – Russian Electric Power Industry”, “KIT – Russian Telecommunications” (all three are managed by “KIT Finance”). However, now they have all changed category and become equity funds.

Apart from stock funds, bond funds and mixed investments, there are some other types of mutual funds. First of all, it’s worth talking about index funds. Essentially, these are mutual funds whose asset structure is tied to a particular stock index.

A stock index is a way to show in a generalized form the dynamics (growth or fall) of the entire securities market (or some sector of it). It is not the index value itself that is important, but its change over time. It allows you to monitor changes in the value of not just one security, but the entire stock or bond market of a given country (or a separate sector).

Most Russian index mutual funds are equity funds. In Russia, the most well-known stock market indices are the indices of two stock exchanges: the RTS index and the MICEX index. Until recently, only the MICEX index satisfied the requirements of the state regulatory body and could be used to create index funds, therefore, more mutual funds focused on the MICEX index have been created so far - already 9, while only two mutual funds are focused on the RTS index. Two more index mutual funds are funds that invest in bonds.

The capitalization of companies included in the MICEX index is calculated taking into account only freely floating shares (this is called “free-float”). State blocks of shares, shares owned by strategic investors and those in cross-ownership are not taken into account. For example, if the owner of 49% of Mosenergo shares is RAO UES, whose shares are also included in the MICEX index, then this share of shares is not included in the calculation of capitalization.

Quite a lot of index funds have now been created. Index funds are passively managed; their manager does not have to worry about which shares he should buy and which ones he should sell. He just has to make sure that the portfolio structure matches the index structure. Consequently, there is no need to spend on expensive analytics, fewer purchases and sales of securities are made, and if the management company’s expenses are significantly lower, then the amount of remuneration can be reduced. The management company fee for index funds varies from 0.3 to 1.5%. And for equity funds, the average management fee is 3.24% for open-end funds and 3.36% for interval funds.

Over the long term, lower costs significantly improve fund performance. World experience proves that in the long term, index funds have an advantage over actively managed ones: most mutual funds (analogues of our Russian funds) fail to perform better than the index over long periods. And if it’s so hard to beat an index, isn’t it better to just invest in it? Therefore, index funds are very popular in world practice. However, an investor in such a fund must have strong nerves in order to calmly experience a drop in the value of his shares during a market decline. After all, when the market falls, the index fund must fall along with it. This is unpleasant for any investors.

Therefore, index funds should be chosen by those investors who are going to invest money for at least 2-3 years, and preferably more.

Since changes in the price of shares of index funds reflect changes in the situation on the market as a whole, it is very easy for a shareholder to receive analytical materials - after all, any investment company prepares market reviews and publishes its forecasts. Another type of mutual fund that has not yet been discussed is money market funds. These are funds that must keep at least 50% of their assets on deposits, while the rest is invested in bonds, and, as a rule, short-term ones. This makes money market funds even less risky than bond funds. But, of course, they are also less profitable. Strictly speaking, now there are only six such funds - these are the Open-end mutual investment fund of the money market "KIT - Money Market Fund" managed by "KIT Finance", the Open-ended mutual investment fund of the money market "DVS Money Market Fund" managed by LLC "DVS Investment" , Open-end mutual investment fund of the money market "Emerald" managed by Rosbank Management Company LLC and "1st Money Fund" managed by the management company "Premier Asset Management".

Managers believe that the yield on money market funds should roughly match the interest rate on bank deposits. However, a money market fund has one big advantage over a bank deposit. If a bank depositor cannot withdraw the principal amount from his time deposit early without loss of interest, then in a mutual fund the shareholder can redeem the shares on any working day without loss of income. The formation of the mutual fund "KIT - Money Market Fund" ended only on November 12, 2004, the mutual fund "DVS Money Market Fund" - on April 27, 2005, and the mutual fund "Izumrud" - on June 24, 2005, so their history is quite short. Mutual Fund "Alfa Capital Reserve" has been operating since April 30, 2003. Its profitability for 2004 was 7.72%. In 2005, the return on the KIT Money Market Fund and Alfa Capital Reserve funds was 7.04 and 7.55%, respectively.

There are also mutual funds that invest in shares of other mutual funds. They are called funds of funds. The task of managers of such funds is to select the best existing mutual funds. But since the history of their work is still very short, it is difficult to say how successfully they will be able to cope with this task.

Funds of funds are a popular instrument in the Western market. Their development especially intensified in the late 1990s, amid the search for alternative investment strategies. More than 10% of Americans' private savings are concentrated in this sector of collective investments, and most Europeans entering the stock market for the first time choose funds of funds.

Western experience shows that the winners are those funds of funds that themselves have low costs and buy mutual fund units for their portfolio that also have low costs. The costs of Russian funds in this group can most likely be attributed to the market average.

The fund of funds is a new product for the Russian mutual fund market, which allows shareholders to simultaneously entrust their savings to virtually a whole range of management companies that show the best results in their segments of the mutual fund market. This gives the shareholder the opportunity, regardless of the size of investments, to achieve maximum diversification and reduce risks by increasing the number of strategies, types of assets and managers.

In addition to shares of other mutual funds, funds of funds can invest part of their assets in shares. For example, in the assets of the First Fund of Funds (Maxwell Asset Management Management Company), mutual fund shares at different times occupied from 25 to 77%, shares - from 8 to 35%, cash - from 2 to 51% (not counting the initial period fund performance when cash dominated).

Real estate funds. The object of their investment is clear from the name. In recent years, investing in real estate specifically as a financial asset, that is, to generate income, and not for use by the owner himself for its intended purpose, has become increasingly popular. Not only legal entities and super-rich citizens, but also the middle class are happy to invest in property that can both generate regular income (renting out apartments) and steadily increase in price. However, not all private investors can invest in real estate amounts comparable to the cost of entire apartments; most are willing to invest the equivalent of several thousand or even several hundred dollars.

In addition to greater accessibility in terms of investment amount, investments in real estate through mutual funds are less risky for individuals due to greater control over their activities by the state regulatory body - the Federal Financial Markets Service of Russia. It is for such investors that real estate mutual funds should become a reliable tool for increasing funds.

There are also different types of real estate mutual funds. First of all, we can highlight rental funds, these are those that own offices, business centers, etc. and whose income is rent. Other real estate funds make money by developing real estate properties. At the same time, it is possible to specialize in residential or non-residential real estate, among residential - mass development or elite, urban or cottage. The first real estate fund was created in early March 2003. (Closed mutual real estate investment fund “First Real Estate Investment Fund” managed by JSC “CONCORDIA-Asset Management”), and at the end of August 2006 there were already 120 operating real estate funds.

Real estate funds are undoubtedly one of the most promising groups of mutual funds. However, there are also problems. The question remains whether real estate mutual funds should pay VAT and property tax. Since real estate mutual funds are closed-end funds, the ability to sell shares on the secondary market is important for shareholders, but this mechanism has not yet been established. Shares of some closed mutual funds have been listed on exchanges, but there is not yet sufficient demand that could ensure active trading.

Closely related to real estate funds are mortgage mutual funds, which must invest in cash claims on obligations secured by mortgages. So far there are seven such funds - “YUGRA Mortgage Fund” (Management Company “Region Development”), “NVK City Mortgage” (Management Company NVK), “First Mortgage” and “Second Mortgage” (Management Company “Yamal”), “Mortgage Fund No. 1” "(Management Company "Collective Investments"), "First United" (Management Company "Russian Capital Mutual Funds"), "KIT - Mortgage Fund" (Management Company "KIT Finance").

Funds for especially risky (venture) investments are designed not for individuals, but for corporations that finance certain projects that they consider promising. Currently, 20 such funds have been created. It is significant that in May 2005 there were only six venture mutual funds.

The last group of funds are private equity mutual funds. They are also created by corporations, but not for promising developments (like venture funds), but for already operating businesses. There are currently five such funds.

Types of mutual funds: open, interval and closed

There are three types of mutual funds - open-ended, interval and closed-end. The differences between them lie in how often they can issue and redeem units.

Open-end funds do this every business day. In this case, the cost of the share is also calculated daily. This type of mutual fund is the most convenient - on any working day you can find out how much a share costs, buy or sell it. Interval funds do not sell and buy shares on a daily basis, but at predetermined periods of time called intervals. Most often, four intervals are set per year, or once per quarter. In any case, the law provides for at least one payment per year for shares of such funds. The value of units in such funds is calculated at the end of each month and at the end of the interval. The time interval during which transactions with fund units are possible lasts two weeks.

Since the manager of an interval fund does not have to ensure that shareholders can redeem shares every day, such funds are allowed to buy less liquid securities, which are often more undervalued, and therefore potentially more profitable. Here is a possible benefit for the shareholder. But compared to an open-end fund, in this case you need to plan your investments, firstly, for a longer period, and secondly, you should take into account the time factor - after all, the company will redeem the shares of an interval fund only during the interval, and not on any working day, as in an open-ended fund. Of course, there is the possibility of selling shares of an interval mutual fund on the secondary market, but so far, apart from Uralsib Management Company, practically no one is doing this.

Closed-end funds are created for a specific period during which shares are not redeemed. If such a fund is created for three years, then shares of such funds will be sold and bought at any time; management companies list closed-end funds on exchanges. There they are quoted according to the same rules as other securities; they can be bought and sold through a broker. This is called exchange-traded secondary circulation of shares. Often the management company agrees with some related structure, for example, with an investment company or bank, that it will sell and buy back shares. This is another opportunity to increase the liquidity of closed-end fund shares, called over-the-counter secondary trading of shares.

Mutual funds are different: open, closed, interval. The difference lies in how often the funds can issue and redeem units. This gradation is introduced by the Federal Law “On Investment Funds”. Article 12 of the law states: “the validity period of the trust management agreement for a mutual investment fund.” This refers to the “frequency of issuance and redemption of shares”; this is a standard criterion for subdividing mutual funds in a scheme.

Open-end mutual investment funds (OPIF) - can buy and sell shares (or shares) at the request of investors on any working day of the fund. From an investor's point of view, this is the most convenient type of fund. Typically, shares (units) of such funds are sold and purchased at the value of the fund's net assets per share (unit). The main advantage of open-ended funds is liquidity: investors know that they can sell or buy shares or units at or close to the fund's net asset value on any fund business day.

Investments in open mutual funds are analogous to a bank deposit on demand - funds can be withdrawn at any time. In a bank, this deposit usually has the lowest return, in an open mutual fund it is higher, like a time deposit, and the investment is not tied to a term. However, short-term market fluctuations and share prices may provoke the shareholder to take imprudent actions. Therefore, when investing money in open mutual funds, you should not focus on short-term changes in the value of the share; portfolio managers will take all the necessary steps to balance the securities portfolio. In addition, premature redemption of shares only increases the costs of paying various types of remuneration.

Interval mutual investment funds (IPIF) - have a number of properties inherent in open-end funds. For example, selling and redeeming shares (units) without the consent of all investors. But at the same time, their rules may establish a provision limiting the number of shares (shares) that they can buy or sell, as well as the periods of time when buying and selling are possible. Most often, four intervals are set per year, i.e. once a quarter. In any case, for shares of this type of fund, the law provides for at least one payment per year. The value of the shares of such funds is calculated at the end of each month and at the end of the interval. The time interval during which transactions with fund units are possible lasts two weeks.

When resorting to the services of an interval fund, an investor must clearly determine for how long he is willing to place his money. For example, if you don’t need the money for six months, you can choose a fund that redeems and issues shares twice a year. Thus, after six months you can easily redeem your investment units. The number of intervals is determined by the management company and is reflected in the Fund Rules. For interval mutual funds, the possibility of selling/purchasing (issue/redemption transactions) of shares outside the interval allows for exchange trading, which increases their attractiveness in the eyes of shareholders.

Since the manager of an interval fund does not have to ensure that shareholders can redeem shares every day, such funds are allowed to buy less liquid securities that are often undervalued, potentially profitable. More precisely, unquoted securities must be correlated with the rest of the fund's portfolio. For example, controlling stakes in closed joint-stock companies (at least 75% of shares). For the shareholder this is a hidden benefit.

In comparison with an open-end fund, the shareholder needs to plan his investments. This is explained by the fact that, firstly, investing in interval mutual funds is long-term in nature, and secondly, the time factor must be taken into account.

Closed-end mutual investment funds (CLIF) are more similar to joint-stock companies. They usually carry out an initial public offering of shares or shares through an open sale. After this, they can carry out additional issues of shares (units) only with the consent of existing investors of the fund during a general meeting. Closed-end mutual funds differ from open and interval mutual funds in the following: firstly, by the investment object (if it is a closed real estate mutual fund), and secondly, by the possibility of “entry and exit”. The closed mutual fund pays off shareholders at the end of its validity period.

Closed mutual fund units can be sold ahead of schedule on the stock exchange. This significant innovation was introduced by the Law “On Investment Funds”. Exchange circulation of shares is designed to increase the availability and liquidity of shares of interval and closed mutual funds. Although shares can already be purchased in 228 cities of Russia, there are still many settlements that are not covered by the share sales networks. Conclusion: shares of any mutual fund on the exchange make them available to a resident of any locality where there is at least one broker, and thanks to Internet trading and concluding contracts by mail, even the presence of a broker in any locality is no longer necessary.

For closed mutual funds, secondary circulation is generally the only way to ensure the liquidity of their shares, as well as for interval mutual funds. In addition to accessibility and liquidity, exchange trading can provide cost savings, since exchange commissions (broker, trading system, clearing organization, depository) are still significantly less than the average size of markups and discounts.

Mutual funds in Russia are divided into:

• · shares;
• · bonds;
• · mixed investments;
• · real estate;
• · direct investments;
• · money market;
• · particularly risky (venture) investments;
• · funds of funds, mortgage;
• · index.

At first, choosing a mutual fund for a private investor was not burdensome, since there were only funds for stocks, bonds and mixed investments. Now we can say that type differences significantly facilitate the investor’s process of choosing a mutual fund. Looking at the name of the fund, you can generally imagine the structure of its portfolio. If the name includes a stock fund, then the structure of the fund’s portfolio consists primarily of shares (for open mutual fund and individual mutual fund - 50% shares, while the share of bonds can reach 40%). As a rule, such funds offer higher returns with a significant level of risk; due to market fluctuations, the return on shares can be higher than that of bonds.

Equity mutual funds are the opposite of bond funds in terms of objectives, risk and return. According to these characteristics, equity funds are second only to venture funds.

Investing in Russian stocks for a short period of time is very risky. If we consider the performance of equity funds in the long term, they usually show stable income for, for example, 10 years. Investments in mutual funds of shares with a correctly created strategy and a diversified portfolio for a long period of time are less risky than short-term investing without any strategy and portfolio.

A bond mutual fund contains mainly bonds in its portfolio and is distinguished by a relatively low income with a minimal level of risk. From the name it is clear that the priority in investing is aimed at investing in bonds. Being the least risky investment, bond funds are an excellent and more effective alternative to a bank deposit. Investing in a bond fund is primarily suitable for short-term investment strategies.

Mutual funds of mixed investments are characterized by an optimal risk/return ratio. It is generally accepted that such funds combine stocks and bonds in a portfolio. This ensures a balance of two main types of assets in the portfolio, depending on the market situation. Therefore, they are the “golden mean” between mutual funds of stocks and bonds. They show better results than bond funds, with much less risk than stock funds.

Stock, bond, and mixed investment funds are the most popular types of funds. Let's look at new types of funds, starting with a money market fund.

Money market funds are funds that must keep at least 50% of their assets in deposits, with the rest invested in bonds, usually short-term. Thus, this type of fund becomes less risky than bond funds, but also less profitable. Managers believe that the yield on money market funds should match the interest rate on bank deposits. The advantage of the fund compared to a bank deposit: if a bank depositor cannot withdraw the amount from his time deposit early without loss of interest, then in a mutual fund the shareholder can redeem the shares at any time without loss of income.

Fund of funds - from the name it is clear that the fund invests money in mutual funds. It is generally accepted that such a fund can only invest in other funds. (Reminds me of a matryoshka doll). By purchasing fund shares, an investor buys several funds at once. But the question arises: why should the management company pay commissions? There is diversification not only by assets, but also by managers. If there are several funds of different management companies in a fund of funds, then the likelihood increases that if several managers make a mistake, there will still be those who guessed correctly with the market movement.

Of course, this type of fund did not arise in the Russian Federation - it is a Western idea. The investor's costs in funds of funds should be minimal: for the management company of the fund of funds, and for those funds that it buys for its fund of funds portfolio. At the moment, in the mutual fund market, fund costs are far from minimal. They are also organized for marketing purposes, so that they can somehow position themselves among 400 mutual funds.

Venture funds or funds for particularly risky investments can only be of a closed type. They attract particularly large players in the collective investment market, while the minimum “entry” is calculated in millions of rubles. Funds of this type engage in particularly risky operations and can bring extra profits to shareholders. But they are not intended for individuals, but for corporations that finance certain projects that are considered promising.

Real estate fund - investing in permitted categories of real estate and property assets. This type of fund can only be closed in terms of investment terms and contain, in general, almost all the same assets as other funds. These are mainly shares in the authorized capital of Russian limited liability companies engaged in the design and construction of buildings and structures, engineering surveys for the construction of buildings and structures, and restoration of cultural heritage sites (historical and cultural monuments). This list also includes real estate activities, real estate and (or) rights to real estate; real estate objects under construction and reconstruction; design and estimate documentation.

Real estate is legally defined as: land plots, subsoil plots, isolated water bodies and all objects that are connected to the land in such a way that their movement without disproportionate damage to their purpose is impossible. Also buildings, structures, residential and non-residential premises, forests and perennial plantings, condominiums, enterprises as property complexes. The exception is real estate, the alienation of which is prohibited by the legislation of the Russian Federation. Index funds may contain cash, including foreign currencies, and securities on which the index is calculated.

Mortgage funds can only be of a closed type and can consist of funds, including foreign currency, government securities of the Russian Federation and constituent entities of the Russian Federation. Mortgage funds are most similar to real estate funds. In general, mortgage funds invest in the cash claims of obligations secured by mortgages. It is worth noting that, in fact, the real division of funds by type of asset occurred only after the FCSM Resolution No. 31/ps came into force. "On approval of the Appendix on the composition and structure of assets of joint-stock investment funds and assets of mutual investment funds."

In our country, mutual investment funds were created according to foreign models to improve investment activities in the securities market. The model of contract funds was chosen as the basis (the management company enters into an agreement with the investor). The advantages of such a model in Russian conditions are, firstly, that the contract fund model combines simplicity and reliability at the same time. Also, the fact that a contract fund can be created without forming a legal entity, which avoids double taxation to which check investment funds (CHIFs) and non-state pension funds (NPFs) are subjected in Russia. Secondly, since a contract fund is not a joint stock company (which must be a legal entity), it does not have a board of directors, board or directorate, and is not required to hold general meetings of shareholders. This means that difficulties do not arise, which now in Russia often put a joint-stock company with a significant number of shareholders in a difficult position. This design has other positive effects, in particular, the fact that the fund itself does not need a staff of managers and employees. True, the management company has them and still requires funds for their maintenance. But since the management company is allowed to manage several funds at the same time, this reduces management costs.