Thanks to Investment Funds every saver can invest i savings in specific mutual funds to increase value and get benefits. All within a more controlled risk margin.
But what they are and how they work Investment Funds? What are the typesI advantages yes risks connected?
Investment funds: what are they?
What are the Investment Funds? Before discussing this subject, it is good to understand the meaning of the acronym UCITSthat is to say Collective Investment Schemes.
Mutual funds are mutual funds that subdivide the heritage in a series of ratings. Each of these actions belongs to a multitude of investors. Each investor benefits from the same rights in proportion to the number of shares owned.
Mutual funds are managed by the RMSor the Asset management company: its main task is to invest the shares of mutual funds in different types of assets in order to increase their value.
The value of each individual action is also defined NAV (net asset value).
Investment funds: how does it work?
Investment funds are a simple and relatively safe method invest their money: relying on the experience of experts, the saver can obtain social advantages in proportion to the shares held.
Investment funds can be compared to a kind of group cash register Or I savings many private savers: this money then comes invested in securities by the Portfolio Management Company (SGR) which are registered in the relevant Registers.
THE advantages that arise from this type of investment are multiple: from returns, lower costs, greater negotiating power and portfolio diversification.
Investment funds: what are the types?
There are many types from Investment Fundseach of which offers different benefits and risks depending on the amount of money invested by each investor.
Here is a list of the main types of investment funds:
- open or closed fundscharacterized by more or less freedom of access and withdrawal;
- “harmonized” fundswhich provide for a series of constraints to protect savers;
- equity fundscharacterized by a high level of risk;
- bond fundscharacterized by government bonds and bonds;
- balanced fundswhere it is possible to invest in stocks or bonds;
- liquidity fundwhose financial duration does not exceed six months;
- flexible fundsstrictly linked to the dynamics of the financial markets.
Investment funds, by analogy, can be considered as a large portfolio where the savings and stocks of many investors are collected. Which one to choose ?
Investment funds: which one to choose?
What is the best investment fund choose and subscribe? The decision is not easy at all, since each saver has his own economic availability and may want to hire a risk level more or less high.
Moreover, on reading the rankings of the best mutual funds, we see that there are just as many discriminators based on returns offered at 1 month, 1 year, 3 years or 5 years.
Before subscribing to an investment fund, it is therefore good trust an expert consultant on the subject who can recommend the best alternative for your pockets.
Investment funds: what are the costs?
When a saver decides to subscribe to investment funds, he will have to bear the costs associated with incoming commissionsin addition to management fees.
The subscription of an investment fund can be done in two ways:
- by single payment (Photo);
- with a capitalization plan (Pac).
Finally, a Taxation with 26% rate (as established by the law of July 1, 2014).