Mutual Funds: Tips and Recommendations

Mutual FundsMutual funds, you are investing savings in securities. The company that manages the fund combines the funds of people (shareholders) and buys securities on them: stocks, bonds of enterprises (metallurgical, energy, oil, banking, transport, etc.). Your share in a mutual fund is determined by the number of shares (a security that confirms the right to a part of the fund’s assets). You buy a share at the same price, and when after some time its value increases, you can sell it - and you can make good money with it. reference

Mutual funds appeared in our country in 1996. Now there are 696 working mutual funds in the country.

In Russia, every minute there is a new shareholder.

Stock Exchange - the securities market, wherepurchase and sale of shares and bonds of joint-stock companies and government bonds. Through it mobilizes funds for investment in industry. The stock exchange rates (price levels) of securities. They are a barometer of any changes in the economy and politics of the country. Courses decline in the years of crises and increase in periods favorable for the rise of production. On the stock exchange and operate management companies mutual funds.

Which fund to choose?

The longer running the market managingthe company you are going to trust money with is best. There are: mutual funds shares. They are the most profitable, can bring up to 100% profit for the year. But here is the highest probability of risk. Shares may fall in price - however, over the past year, only a few funds worked in the "minus" (losses averaged from 2 to 10%). Bonds mutual funds The risk is minimal, but it is unlikely to earn more than 20% per year. The shareholders' money is usually invested in bonds of state enterprises. Funds for mixed investments (stocks, bonds) This is the golden mean in terms of profit and risk.

When to wait for a profit?

Invest for a long time - from a year andabove (see table). The market is subject to fluctuations, but in the long run it is growing. Now stocks are falling in price, but by the middle of September, experts predict stabilization. Make sure that the price of the unit has increased during the life of the fund. This information, as well as other information about the mutual fund, is always provided in the offices of management companies. Take home the booklets of several funds and study it carefully. The rise or fall in the value of securities depends on various factors: the rise in prices for oil or gas, the repayment of debts of a corporation, the company's entry into a prestigious rating, reforms in certain industries, and so on. Professionals monitor the fall-rise in the value of shares and react to market behavior: buying or selling securities. If the value of the mutual fund assets (all company money) divided by the number of shares, you get the price of one share. It is calculated daily or for a specific period. You can find it on the Internet or where you purchased shares. How much can you earn? * Fund (management company) Minimum purchase price (in rubles) Percentage increase in share value Per year Over 2 years Agan-Molodezhny (Agan) 10016,4199,13Energocapital -Balanced (Energocapital) 10032,13116,22KIT Fortis - Russian electric power industry (CIT Fortis Invest Management) 50,000 60.41209.244 Raiffeisen Bonds (Raiffeisen Capital) 15,000 7.5613.52Alfa-Capital Promotions (Alfa Capital) , 25 “Zamoskvorechye-Russian Energy” (UK Bank of Moscow) 100074.60- * According to data on sulfur August 2007, the National League of Governors (www.nlu.ru). Read more about