Mutual fundsInvesting inMutual funds, you invest savings in securities. The company managing the fund pools people's funds (shareholders) and buys securities with them: shares, bonds of enterprises (metallurgical, energy, oil, banking, transport, etc.). Your share in the mutual fund is determined by the number of shares (a security that confirms the right to part of the fund's property). You buy a share at one price, and when after some time its value increases, you can sell it - and make a good profit on it. Reference
Which fund to choose?
The longer the management company has been operating in the marketthe company you are going to trust your money to, the better. There are:Equity mutual funds These are the most profitable and can bring up to 100% profit per year. But there is also the highest probability of risk. Shares can fall in price – however, over the past year only a few funds worked in the minus (losses amounted to an average of 2 to 10%).Bond mutual funds The risk is minimal, but it is unlikely that you will be able to earn more than 20% per year. The money of shareholders is usually invested in bonds of state enterprises. Mixed investment funds (shares, bonds) This is the golden mean in terms of profit level and risk.
When to wait for a profit?
Invest money for a long term - from a yearand higher (see table). The market is subject to fluctuations, but in the long term it grows. Now the shares are falling in price, but by mid-September experts predict stabilization. Make sure that the share price has grown during the fund's existence. This information, as well as other information about the mutual fund, is always provided in the offices of management companies. Take home brochures from several funds and study them carefully. The growth or decrease in the value of securities depends on various factors: the growth of oil or gas prices, the repayment of debts of some corporation, the entry of the company into a prestigious rating, reforms in certain industries, and so on. Professionals monitor the fall and rise of the share price and react to the behavior of the market: they buy or sell securities. If the value of the mutual fund assets (all the company's money) is divided by the number of shares, you get the price of one share. It is calculated daily or for a certain period. You can find it out on the Internet or where you purchased the shares. How much can you earn? * Fund (management company) Minimum purchase price (in rubles) Increase in share value in percent Per year For 2 years Agana-Youth (Agana) 10016.4 199.13 Energy Capital-Balanced (Energo Capital) 10032.13 116.22 KIT Fortis - Russian Electric Power Industry (KIT Fortis Invest Management) 50,000 60.41 209.24 Raiffeisen Bonds (Raiffeisen Capital) 15,000 7.56 13.52 Alfa Capital Shares (Alfa Capital) 5000 20.58 116.25 Zamoskvorechye - Russian Energy (UK Bank Moscow)100074.60-* According to data from mid-August 2007 from the National League of Managers (www.nlu.ru). Read more about
