You have probably heard a lot about investment funds as they are quite popular investment objects. You may even have already invested in investment funds under an individual pension plan, or have their certificates in a brokerage account. In fact, according to the Investment Company Institute, more than 92 million US individuals (approximately 45% of US households) invested in mutual funds in 2008. But do you know what investment fund Why are so many investors investing in them?
Mutual funds, sometimes also called mutual funds, are investments that allow a group of investors to pool their money and hire a portfolio manager. The manager invests this money (fund assets) in stocks, bonds or other investment securities (or a combination of stocks, bonds and other securities). While the fund is in operation, the manager continues to buy and sell shares and securities according to the investment style specified in the fund's prospectus.
All investment funds collect fees from their clients in order to operate and manage the fund. Management fees are paid by the fund's asset management company (or manager) who directly manages the funds. Some funds also charge investors an upfront sale fee when they purchase shares in the fund, while other funds charge a final "burden" (called a deferred sale fee) when investors sell shares in the fund. There are also funds that do not have any commission fees, and these are known as "no-load" funds. Commission 12b-1 is charged by some funds to cover promotional and marketing costs. There are also different classes of fund shares, which differ in the commission structure according to the established classes: class A, class B, class C, etc.
From a technical point of view, investment funds are "open funds" - one of the four main types investment company. Closed funds, exchange-traded funds and mutual funds are the other three types. As investment companies, investment funds in the United States are regulated under the Investment Company Act of 1940.
Regulatory restrictions on the activities of investment funds, in comparison with other investment alternatives (for example, hedge funds), which assume the existence of a pool of investors, are quite extensive. Mutual funds must comply with a strict set of rules, which is strictly monitored by the Securities and Exchange Commission (SEC). The SEC oversees the fund's compliance with the Investment Company Act of 1940, as well as compliance with other federal rules and regulations. Since their development, the regulation of investment funds has provided investors with confidence in the investment structure of their investments.
The beauty of investment funds is that you can invest several thousand dollars in one fund and have instant access to a diversified investment portfolio. If you wanted to diversify your portfolio in a different way, you might have to buy a number of securities, which would expose you to more risk and additional difficulties associated with their acquisition.
Another good reason to invest in investment funds is their adherence to the main tenet of investing: do not put all your eggs in one basket. In other words, combining different types of investments in the same portfolio reduces your risk of loss from any of those investments. For example, if you invest all your money in the shares of one company and that company files for bankruptcy, you will lose all your money. On the other hand, if you invest in an investment fund that owns many different stocks, it becomes more likely that you will multiply your money in the long run. At least the bankruptcy of one of the companies will not mean that you will lose all your investments.
Many investors do not have the resources or time to buy shares in individual companies. Investing in individual securities, such as stocks, requires not only significant resources, but also a significant amount of time. In contrast, investment fund managers and analysts devote their entire professional capacity to researching and analyzing existing holdings and potential holdings for their funds.
There are many types and styles of investment funds. There are equity funds, bond funds, sector funds, money market funds and balanced funds. Mutual funds allow you to invest in the market whether you believe in active portfolio management or you prefer to buy a segment of the market without further intervention from the manager (passive funds and index funds). The availability of various types of funds allows you to build a diversified portfolio at the lowest cost without great difficulties.
While you have many investment opportunities (investing in stocks, exchange-traded funds, closed-end funds, etc.), investment funds offer an easy, effective way to invest for an individual retirement program, education, or other financial goals.
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 financial transactions. As part of the article, we will consider what an investment fund is, what types of it exist, what criteria to base on when choosing a fund, how much you can earn, and much more.
The content of the article:
Investment fund- it is organized financial structure (company), which is engaged in professional management in cash other investors, as well as their own. The way this fund works is very simple:
Some types of funds may charge a fee or a manager's fee, but not all.
It is impossible to answer this question unequivocally, since there are many different funds that are divided by markets, types and assets. But in order to understand how much you can earn on investment funds, below we will show different examples of funds and their profitability.
On average, with a 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 just an average.
For example, a mutual fund Balanced”, consisting of mixed investments in Sberbank, shows an increase of 56.88% over the past 3 years:
If we take into account that this fund includes, in addition to shares, also bonds and other conservative instruments, then the risk-return ratio is quite justified.
Today there are the following key types of investment funds:
As for the latter, there are complex solutions that include several ETFs at once. An example of such a fund is Global ETFs:
Per Last year this fund earned investors 21.44% profit, which is a worthy indicator for an ETF direction.
In Russia, it is Mutual Investment Funds (UIFs) that are most common, they have convenient access, ready-made investment solutions are offered in the largest banks. As a result, the most interesting and useful for the investor is the classification depending on the strategy used and the type of instruments purchased:
The division of funds is not limited to this. They can be divided depending on the sectors of the economy (telecommunications, Natural resources, financial, consumer sectors, etc.).
As the name implies, such funds focus on buying shares. In general, on stock exchanges There are many types of shares that are divided by sectors, countries, but first of all they are divided by the volume of capitalization:
For example, a small-cap share fund at Sberbank implies a high level of risk, and has grown by 48,76%:
In general, the high level of risk does not justify such a return, but our task is to illustrate that there are funds that specialize specifically in small companies and their shares on the 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 shares of companies around the world, which provides maximum diversification.
Fund managers have earned 10.56% over the past year, which is quite justified for low level risk and number of instruments.
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 drawback - a relatively low yield. There are different classifications, but among most funds, three types are common in territorial dependence:
For example, the Alfa Capital bond fund has earned 289,17%:
As you can see, the yield curve for investing in bonds is notable for the absence of sharp drawdowns (falls) even during a crisis, when compared with stocks that lost more than 50-70% in price in 2008. Growth is relatively stable, which is what attracts the majority conservative investors to such funds. When compared by capitalization, bond funds significantly outperform stock funds.
Another investment direction among the funds that are engaged in the 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 such fund is New York Mortgage Trust, its yield is 15.49% per year, despite the fact that the investment is made in US dollars.
Among the ruble funds, one can cite real estate mutual funds at as an example. Below is the fund Residential Properties 2 ". The share price chart itself looks unprofitable, but you need to take into account the payments every six months to the owners of the shares:
Reported payments were as follows:
Thus, the fund pays out approximately 10% per year, but the shares also fall in value. To catch the profitability from such a mutual fund, you need to invest in the long term - at least 5 years, or sell everything before the price drops.
As already noted, such funds keep part of their funds in deposits of the largest banks (usually 50%), the rest - in very reliable bonds. Such conservatism is achieved through a minimum income.
Let's take the fund as an example. Monetary» in Sberbank. There are no yield charts, and they are not required here, because profits are usually stable. For this fund, the declared income is 6.5% per year, while the return on a classic deposit is 3-4.5%.
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 of the mutual funds are mixed.
Here is an example of the structure of one of Alfa Capital's mixed funds - "Balance":
Fund return approx. 15% per year, since its foundation in 2006, it amounted to 94% ( taking into account the crisis in 2008).
So, we have considered many types of funds, their features, profitability. Now let's pay attention to how to systematize it all, and how to choose an investment fund that will ideally suit you. To do this, follow the following instructions:
If you follow the above steps and choose reasonable goals then be sure to make a profit on your investment.
Before deciding how much and how to invest in an investment fund, you should also examine the positive and negative sides funds in general.
Advantages:
Flaws:
As you can see, for the most part investment funds provide great benefits for the investor. Their shortcomings are incomparable and not so significant in comparison with the opportunities they offer.
Investment funds are organizations that professionally manage investors' money. There are hundreds of different types of funds, some invest only in stocks or sectors of the economy, others work with bonds, real estate, precious metals. Each option differs in terms of risk and potential return.
To correctly choose an investment fund, you need to consistently determine the goals, the amount and choose a worthy company. In general, such investments have significant advantages over individual work with investments, as they imply professional management and wide diversification.
If you find an error, please highlight a piece of text and click Ctrl+Enter.
The main stimulus for the development of any economy (even the most primitive one) is the constant expansion in space and time of the market for products, the accumulation and increase in wealth, and the stimulation of consumption and reproduction of that material base, which is actually its main basis.
AT modern world post-industrial economy based on information, knowledge, intangible assets and the rapid expansion of service markets, the fundamental imperative or business development model is to focus on investing in the future rather than on utilitarian, everyday consumption (here and now).
This imperative (established in the post-war 50s of the last century) predetermined the forms of new economic behavior (both individual households and entire countries), which are based on the principles of increasing capital cost in time or investment.
The main reason for the emergence of such a form of investment as the creation of special organizations - funds, was the development (primarily in the United States and Europe) of various pension programs, the main task of which was to maintain a person's ability to consume goods and services at the usual level until very old age. Actually, this explains the obvious fact that the main customers of ocean cruises, expensive medical services, luxury goods and other hidden material benefits are precisely the representatives of the older retirement generation of the countries of the “golden billion”.
Thus, it can be stated that it was the reorientation of consumption from the current to the future (transformation in time) that became the basis for the development of such a sector of the world economy as investment, with the help of various specialized institutions - funds.
As can be seen from the above, the main task of an organization engaged in investment is to create added value in future periods. In many ways, this activity is similar to the usual commercial activities, such as, for example, the company's investment of its own or borrowed assets in the development of production.
But in this case, investment as such is not the main business of a manufacturing (or other similar) corporation. As for investing as a separate type of business, the main activity is investing funds (both borrowed and own) in various types of assets (from real estate and diamonds to blocks of shares in transnational companies), which, due to an increase in their price in the future, they create additional marginal value, or, more simply, profit.
At the moment, there are many different approaches to the definition of investment funds, their typology and classification.
It seems most reasonable to classify them according to the following parameters and features:
The above classification of investment funds is rather enlarged, and it is natural that with a more detailed consideration of this issue, more than 150 types of investment funds can be identified, not to mention their combined combination.
With regard to Russia, the topic of development investment business can be divided into several stages, ranging from the first voucher funds to modern forms of collective investment.
Currently, the main types of investment funds are:
Of course, the sector of commercial investment is of the greatest interest, which in Russia is represented by the following forms and types of funds (see figure)
The existing types of mutual funds in Russia suggest three (main) options for the investor to invest their money:
As for other types of investment funds in Russia, it should be recognized that their development is only at the very initial stage. This is due to the instability economic system countries and increased investment risks.
Reading 10 min. Views 4 Published on 07.04.2018
Mutual investment funds and joint-stock companies appeared in the territory Russian Federation over twenty years ago. During their short history, they managed to spread their influence over more than eighty percent of the investment market. The reason for their high popularity is quite simple, because not every person can independently enter the stock exchange. Many entrepreneurs lack the knowledge financial resources and free time to conduct such activities. With the help of mutual funds, everyone gets the opportunity to become a successful broker with minimal risk of losing invested capital. In this article, we will tell in simple words about the principles of operation of mutual investment funds, their advantages and disadvantages.
A mutual investment fund (UIF) is a very simple and understandable instrument that has existed in Russia for over 20 years
To correctly answer this question, it is necessary to give a competent definition of this concept. A mutual fund is an organization that brings together several investors for the purpose of investing funds in investment activities. The management of the turnover of financial resources is carried out by experienced brokers of the management company. The purpose of this fund is to constantly increase the value of the depositors' assets. Based on all of the above, we can conclude that such funds carry out their activities thanks to the investments of citizens.
A person who has invested his financial resources in such an organization becomes a shareholder, that is, the owner of a certain amount of shares.
The share itself is a document confirming the investor's ownership of the fund's assets. The presence of this document is a documentary evidence of certain rights that are guaranteed by the fund. Each contributor has the following rights:
As practice shows, the conversion of shares of a closed-end mutual investment fund is carried out only upon termination of the activity of the fund itself or termination of the agreement. To ensure the liquidity of the shares, the manager of the company regulates the exchange movement of investments.
It is important to note that, unlike shares, shares do not have the status of securities. They do not have a face value and are issued only in non-documentary versions. Also, there is no adjustment of the number of securities, open mutual funds. In the case of closed-end mutual funds, the number of securities is regulated on the basis of the rules of the trust agreement.
In order to calculate the value of a unit, it is necessary to divide the fund's net assets by the total amount of units issued. The term "net assets" should be understood as property values as of the settlement date minus debt obligations management company before other members of the fund.
Summing up all of the above, you should pay attention to the fact that the value of a share is a dynamic value that can either increase or decrease depending on the total price of the portfolio.
Mutual investment funds in Russia operate on the basis of funds accumulated by shareholders. The management company provides control over investments and selects areas for the direction of investment activities. The staff of such organizations includes competent analysts, experienced traders and professional managers.
Mutual investment funds also include independent infrastructure units. The task of the depositary is to preserve the property of depositors and control the actions of the management company. The registrar registers the shares and fixes the rights to the property of depositors. The task of auditors is to carry out various projects, and financial intermediaries accompany financial operations and make deals.
All actions of a mutual investment fund are carried out in a strict manner. At the first stage, the investor submits an application to the agent for the purchase of a share. After the application is approved, an agreement is concluded between the depositor and the management company. The latter transfers all documents provided by the depositor to the registrar. The registrar's task is to include a new shareholder in the relevant register, accrue shares and provide an extract. Further, the management company, through its representatives in the investment market, purchases assets. The acquired assets are fixed on the accounts of the fund, after which they are transferred to the depository for storage.
There are several main advantages of this direction of investment activity. Among them, information transparency and the presence of mutual control should be highlighted. Each of the infrastructure divisions controls the other structure. And the activities of shareholders are subject to audit.
A unique feature of this species entrepreneurial activity is the ability of the shareholder to have a fractional amount of securities. Thanks to this feature, the entry threshold is significantly reduced, since the cost of a whole share can be quite high. In some funds, investors are given the opportunity to deposit money for a share in stages, using a capital call scheme. When choosing this scheme, financial injections into the activities of the fund are made only if necessary. The advantage of this approach is the constant movement of funds.
There is a list of indirect financial costs that await an investor when investing in mutual funds. The expense item includes a commission that is charged from the entrepreneur when acquiring a share. The allowance can be about one and a half percent of total amount deals. As a rule, the higher the amount of investment, the lower the percentage premium is taken from the entrepreneur.
Considering the question of what a mutual fund is and the features of this area of investment activity, one should mention management costs. These costs represent about five percent of the total net assets. They include remuneration of management companies and payment for the services of infrastructure units. According to experts, these expenses are "unpleasant" because they are collected even if the fund makes a loss. Also, management costs include tax assessments. In the case of a secondary sale of a share, the investor must pay thirteen percent of the income received. It is important to note that there are several different methods for reducing tax payments. Special tax deductions and the exchange of securities within the same management company can significantly reduce the interest rate.
For twenty years of practice on the territory of the Russian Federation, a large number of various mutual investment funds have been formed. They are classified into separate groups according to the following criteria:
We suggest starting a review of various types of investment funds with organizations belonging to the first group. The leader in this segment is considered to be open-ended investment funds that offer their depositors the repayment and issuance of funds at any time. Investors of such funds have the right to invest their capital only in those assets that have high liquidity. Open mutual funds offer their members guaranteed reliability, but the profitability of this enterprise is rather low. This fact is explained by the fact that members of the fund can return their own investments at any time.
Another type of funds belonging to the first category are interval mutual funds. A feature of this organization is the limited period of issuance and repayment. According to the internal rules established in such organizations, the issuance of funds is carried out once a year. This means that the invested capital will not be available to the investor for a certain period of time. Thanks to this rule, the management company is able to invest in medium-term projects with high prospects for increasing the value of assets.
Closing mutual fund is the last representative of the category under consideration. In these institutions, the issuance of shares is carried out only at the stage of formation of the fund, and the redemption is carried out at the time of closing. These organizations are created to achieve a specific goal, after which they cease their activities. It should be noted that these institutions have access to the widest range of investment assets. According to statistics, the cost of joining a CPIF is about one million rubles. Only large investors become members of these funds.
According to experts, despite the increased risks, interval and closed mutual funds have a high profitability. Shareholders' securities often move on the secondary market, which puts the liquidity of the share into question.
Next, we should consider the category of mutual funds, where the status of the investor plays an important role. For ordinary funds, the status of the investor does not matter much. In the case of closed institutions, only large "players" can take part. To obtain this status, an investor must meet a number of strict requirements. First of all, the total cost of the investor's capital must exceed more than 6 million rubles. In addition, you will need to have some experience in making transactions in the stock market. A special requirement is an annual turnover of financial resources equal to 6 million rubles.
The third category includes funds that differ in the method of use financial instruments. This category includes organizations engaged in investment activities in the financial and commodity markets, the securities market and the index exchange. In addition to the above organizations, there are credit and mortgage funds, mutual funds of art values and direct investments. Each of the above organizations has its own unique characteristics, which affects the level of risk and liquidity of investments.
Having dealt with the question of mutual funds - what is it, we propose to consider the key advantages and disadvantages of these institutions. Among the undeniable advantages, one should highlight their availability, since the cost of entering an open fund is one thousand rubles. Each depositor can choose institutions based on their preferences in the area of investment activity. Thanks to a multi-level control system and professional management, the invested capital is under reliable protection.
An impressive investment portfolio provides each investor with the opportunity to diversify investments and minimize the risk of capital loss. Among the advantages of mutual funds, one should highlight the high liquidity of securities, which is ensured by free circulation in the investment market. Each member of the fund receives various benefits, including tax deductions. However, the main advantage of this activity is the complete transparency of all information provided.
However, despite the above advantages, this type of activity has significant drawbacks. First of all, these are risks that are much higher than safer ways of investing ( deposits buying bonds). It should be noted that during a systemic crisis mutual funds become unprofitable.
It should also be noted that this species investment activity requires certain financial costs. The items of additional expenses include the payment of commissions for various transactions and annual contributions to the management company. The disadvantages of activity depend on the specifics of the fund, since some mutual funds have access to only certain areas of the investment exchange. Similar restrictions apply government bodies in order to prevent fraud. In addition, it should be said that during the collapse of the securities exchange, the value of a share can drop sharply.
Special attention should be paid to the fact that the deposit insurance program does not apply to mutual funds. This means that the management company has the ability to reorganize or completely liquidate the established fund. In the event that such actions are carried out during a crisis, the value of investors' shares will go down. This means that all members of the fund will lose a significant part of the invested capital.
In contact with
Ministry of Education and Science of the Russian Federation
federal agency of Education
Pskov State Polytechnic Institute
Chair "Finance and Credit"
By discipline
« Finance»
on the topic: Investment Fund Finance.
Completed by: R.V. Mikhailov
Student group: 671-1107B
Checked by: N.I. Pavlova.
Introduction……………………………………………………………………... | 3 |
1. Mutual investment funds: concept and essence. Their classification. | |
1.1 The concept of a mutual fund……………………………………. | 5 |
1.2 Investment units and operations with them ………………. | 6 |
1.3 Mutual investment funds of Russia ……………….. | 9 |
1.4 Open and interval funds………………………. | 12 |
1.5 Equity and bond funds ……………………………….. | 14 |
2. Features of taxation and infrastructure of mutual investment funds…………………………………………… | 16 |
3. Investment risks and strategy on the example of the funds of the management company "NIKoil"…………………………. | 22 |
Conclusion……………………………………………………………… | 28 |
Bibliography………………………………... | 30 |
The main purpose of this work is to review and characterize mutual investment funds. This paper analyzes all aspects of the legal status of investment funds and companies, the mechanism of their work and contemporary issues related to investment activities. Investment activities one of the most important components of the enterprise. The development of this topic is quite relevant at this time, when our economy is in a deep crisis.
Investment activity is inherent in any enterprise to one degree or another. Making an investment decision is impossible without taking into account such factors as: type of investment, cost investment project, the multiplicity of available projects, the limited financial resources available for investment, the risk associated with the adoption of a particular decision and other reasons for the need for investment may be different, as well as the degree of responsibility for the adoption of an investment project within a particular direction.
In conditions market economy There are many investment opportunities. However, any enterprise has limited free financial resources available for investment. Therefore, the task of creating an investment portfolio appears.
A very significant risk factor. Investment activity is always carried out in conditions of uncertainty, the degree of which can vary significantly. Thus, at the time of acquisition of new fixed assets, it is never possible to accurately predict economical effect this operation. Therefore, decisions are often made on an intuitive basis.
Currently, Russia is facing an acute problem of attracting foreign investment, without which it is difficult to imagine the full development of industry and the implementation of large projects, due to the lack of sufficient funds within the country or the unwillingness of potential resident investors to risk their capital. At the same time, there is nothing to talk about attracting foreign investment without a developed stock market. The derivatives market is an integral part of the stock market, which allows not only to receive speculative profits, but also, which is especially important for direct investors, to hedge against risks. The futures market is very important, because without it, a complete financial market never will be in the country.
1. Mutual investment funds: concept and essence.
1.1 The concept of a mutual investment fund.
A mutual fund is a property , transferred by investors (individuals and legal entities) to trust management of a licensed management company in order to increase this property.
Mutual investment fund - an institution of collective investment, a tool for accumulating assets of many investors. Mutual investment fund - a kind of "money bag", through which operations are carried out on the financial and stock markets. An investor who has invested money in a unit investment fund becomes the owner of the investment unit (shareholder). The property constituting the mutual investment fund belongs to the shareholders on the right of common fractional ownership.
The fund is managed by a licensed management company federal commission on securities. The management company can simultaneously manage several investment funds. The fund is considered to be established from the moment of registration with the Federal Financial Markets Service of the prospectus for the issue of investment shares.
The mechanism of trust management is the basis for the functioning of a share investment. The terms of the trust management agreement are contained in the Rules of the Fund - the main document regulating the activities of the Fund. The Rules of the Fund are developed by the management company on the basis of the Model Rules approved by the Government. The Management Company registers the Rules of the Fund with the FFMS and publishes them in the mass media.
Any physical or entity, including a non-resident of the Russian Federation may join the trust management agreement. Accession to the Fund's trust management agreement is carried out by acquiring investment shares.
The legislation establishes a list of assets that may constitute the property of the Fund:
1. Cash, including in foreign currency;
2. Funds placed on Bank deposit(deposit);
3. Government securities of the Russian Federation;
4. Government securities of the constituent entities of the Russian Federation;
5. Municipal securities;
6. Shares and bonds of Russian joint-stock companies;
7. Securities foreign countries;
8. Shares of foreign joint-stock companies and bonds of foreign commercial organizations;
9. Other securities provided for by regulatory legal acts FCSM RF.
1.2. Investment shares and operations with them.
Investment share- a registered security certifying the share of its owner in the ownership of the property constituting the Fund. An investment share allows its owner to demand from the Management Company:
1. Proper management of the Fund
2. Receipt of monetary compensation upon liquidation of the Fund
3. Redemption of the share and receipt of compensation
4. Payments of income from trust management (closed mutual funds).
5. Participation in general meeting(closed mutual funds).
6. Presentation of a share of an investment company for redemption.
In order to acquire units of a unit investment fund, it is necessary to submit an application for acquisition and transfer the invested amount to the fund's account. The number of investment units credited to the owner's personal account is determined by dividing the amount received in payment for the units by the placement price of one investment unit. Receipt entries in the register of holders of investment units are made no later than 3 days from the date of receipt of funds to the account of the fund.
The placement price of one investment share is determined as the cost of one investment share increased by the amount of the premium, if any. When calculating the number of units and the payout amount, the value of the investment unit is taken as calculated on the day the income/expenditure entry is made in the register of unit investment fund unit holders. Placement and redemption of investment shares can be carried out by the management company and agents for the placement and redemption of shares. In open mutual funds, applications for placement, redemption and exchange of shares are accepted every working day, and in interval mutual funds - on working days of certain periods of time.
Clause 5 of Article 14 of the Law on Investment Funds determines that investment units are freely tradable after the completion of the formation of a mutual fund. No consent of other co-owners of the mutual investment fund is required to transfer your share. Does not apply to the usual common property preemptive right to purchase (Article 250 of the Civil Code).
Moreover, the Law on Investment Funds determines that by joining the trust management agreement of a unit investment fund, an individual or legal entity thereby waives the exercise of the pre-emptive right to acquire a share in the ownership of the property constituting the unit investment fund. In this case, the corresponding right is terminated.
Distinguish between the initial placement of investment shares and the placement of investment shares at the end of the initial placement period. The term of the initial placement is fixed in the issue prospectus.
Conditions for the initial placement of investment shares.
1) the term of the initial placement must be determined in the rules of the fund and cannot exceed three months.
2) during the period of initial placement, shares are sold at a single price
3) during the term of the initial placement, payment for units is allowed only in cash, GKO and OFZ with a variable coupon. At the end of the initial placement period, units can only be paid in cash
4) at the end of the initial placement period, the value of the net assets of an open-ended fund must be at least 2.5 billion rubles, and for an interval one - at least 5 billion rubles. If the value of net assets is less than the norm, the fund is subject to liquidation, the funds are returned to investors without setting deadlines.
5) the initial placement begins no later than 180 days after the registration of the issue prospectus.