Understanding Mutual Investment Funds

Mutual Fund – what is it really?

The great popularity of mutual investment funds (abbreviated as UIF) shows that it is time to dwell on this instrument in detail and provide detailed information about it. Including based on personal experience and searching for analogies with foreign approaches.

What is mutual fund in simple words

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A mutual fund is a form of collective investment in which a licensed management company that owns assets sells shares of its property (shares) to private investors. The activities of mutual funds are regulated Federal law dated November 29, 2001 No. 156-FZ “On Investment Funds”. License granting management company the right to create and manage a mutual fund is issued to individual structural unit TSB RF. By law, the authorized capital of a mutual fund cannot be less than 10 million rubles, but in practice, a reasonable minimum of 30-50 million rubles. Shareholders are mainly individuals, interested in simplifying access to assets, as well as reducing the costs of portfolio formation.

Most mutual funds operating on Russian market, invest in domestic companies, as well as state and municipal ones. Foreign shares, real estate and precious metals. By structure, mutual funds can be:

• Bond funds;
• Equity funds;
• Funds mixed investments;
• Index funds, etc.

In addition, mutual funds are divided into open-end (OPIF) funds - all types listed above, as well as closed-end real estate funds (ZPIFN). The fundamental difference between them is the availability of closed-end mutual fund shares only at the stage of formation of a fund investing in the real estate market. After completing purchases, the fund stops trading transactions for a certain time. He receives income from renting out objects or selling them at a higher price. There are such closed mutual funds as:

• Construction - buy rights to objects under construction for subsequent sale;
• Rental - rent out real estate;
• Development - invest in promising plots of land for development;
• Mortgage - buy the rights of claim on mortgage loans and receive income from payments on them.

How to evaluate the success of a mutual fund

From the consumer's point of view, mutual funds should act as a simple and affordable alternative to exchange trading. portfolio investment. According to the current rules (in particular, FFMS ORDER No. 09-45/PZ-N DATED NOVEMBER 10, 2009), management companies can use derivative instruments to hedge transactions with securities. Effective work with such instruments, especially in falling markets, indicates the highly qualified managers. The main guidelines for the investor should be the long-term return of the fund in comparison with the benchmark (index of the corresponding market sector), as well as the maximum drawdown observed during the period under review.

In practice, a lack of knowledge prevents inexperienced investors from critically assessing the integrity of the proposed services, and this reduces the value of the idea itself. To this it must be added that in general case the funds do not disclose the specific composition of their investment portfolios, which does not allow investors to conduct their own analysis of published reports.

Despite the fact that mutual funds are created to make a profit from investment activities, they may be temporarily at a loss. One should not draw hasty conclusions about the quality of fund management from this, because market conditions are changeable. At the same time, the fund’s long-term losses against the background of the reference benchmark make one think about the professionalism of the management company. The activities of management companies are strictly controlled by the state, but this control concerns exclusively the legal side. These companies do not bear any obligation to preserve investors' funds, charging fees for asset management regardless of the profitability of the funds.

Due to the growing state participation in the investment banking sector of Russia, the opportunities for creating and maintaining large mutual funds are increasingly concentrated in the hands of state-owned banks. Their work in the mutual fund market is not efficient and flexible, and in most cases does not provide long-term profitability at least at the level of bank deposits, losing to them due to the lack of guarantees for invested funds. The most stable and predictable are funds that invest in bonds. What is characteristic is that they (according to investfunds.ru) are preferred by the majority of private investors.

One of the most controversial issues is related to the valuation of the share. Formally, it is equal to the cost ratio net assets(NAV) to the number of shares. On the other hand, investors do not have the opportunity to control the process of distribution of fund income. The management company can verbally guarantee the reinvestment of dividends and coupons. If this is the case, the share price growth should outpace the industry indices, but in practice this rarely happens.

For example, consider the Dobrynya Nikitich share fund, managed by the company "". This is one of the oldest Russian mutual funds, founded in 1997. From September 22, 1997 (calculation start date) to December 29, 2018, its profitability was 1973%. At first glance, this is a solid indicator, but during the same time the Moscow Exchange index grew from 100 to 2359 points, or 23.6 times, outpacing the fund’s return by almost 300%. In addition, the need to pay an annual management fee (currently 3.2%), as well as the lack of rights to receive dividends on the shares in which this mutual fund invests, puts shareholders at a disadvantage compared to stock investors.

An even more eloquent example: a comparison of the profitability of mutual funds investing in precious metals with the dynamics of FXGD from the FINEX company as of December 31, 2018. The growth of shares of “Gold” funds occurred during the devaluation of the ruble. But during the same time, the benchmark FXGD, tied to the price of physical gold, showed even higher profitability.

Assets	1 year	3 years	5 years
BCS "Precious Metals"	20,87%	12,04%	86,08%
Uralsib "Precious metals"	16,2%	7,54%	105,78%
VTB Precious Metals Fund	7,18%	16,59%	72,11%
ETF FXGD	17,83%%	10,63%	110,52%

Advantages and disadvantages of mutual funds

Despite some parallels with American mutual funds and especially exchange traded funds (ETFs), mutual funds are significantly limited in investment convenience and flexibility, as well as returns:

• Open mutual funds do not pay dividends and coupons;
• They have higher costs relative to ETFs;
• Low liquidity, most mutual funds are not traded on stock exchanges;
• Mutual funds are not suitable for short-term as well as transactions.

But on the other hand, it is fair to cite some of the advantages of mutual funds that make them in individual cases the right choice prepared and demanding investor:

• Possibility to defer tax payment by exchanging fund shares;
• Possibility of simplified investment in individual instruments on foreign markets without being assigned the status of a qualified investor, accreditation with brokers or international financial institutions (investments in);
• Possibility of optimizing the investor’s private property as a whole in family, inheritance and other civil legal relations.

conclusions

Despite the accessibility for novice investors and the simplicity of the procedure for buying and selling shares, mutual funds in most cases significantly lose in profitability to benchmarks, have non-transparent reporting, and in general still require monitoring the actions of the management company. Active investing through brokerage companies allows you to achieve both higher returns and a greater degree of control over assets.

A mutual fund is simply the funds of all shareholders added together, with which the management company purchases securities or other assets permitted for mutual funds by Russian legislation. The owners of all mutual fund property are the shareholders. The management company only carries out trust management exclusively in the interests of shareholders and only within the framework of the law “On Investment Funds” and the regulations of the state regulatory body ( Federal service on financial markets, abbreviated as FFMS of Russia).

At the same time, the mutual fund itself is not legal entity. Share investment fund called a property complex. In order to protect the funds of shareholders, funds are managed and stored by different companies. The fact is that all securities are accounted for in a special organization - a specialized depository, which not only stores securities, but also controls all transactions with funds mutual fund. On any order to buy or sell securities or other expenditure Money The mutual fund must be signed not only by the head of the management company, but also by the responsible employee of the special depository.

Companies are jointly and severally liable, and they will answer with their property for any violation of the rules of the mutual fund. If the management company wants to carry out transactions that do not comply with the fund’s investment declaration, the specialized depository will not give consent to them and will block the transaction.

A specialized depository does not have the right to use and dispose of the property of a mutual fund; its task is to keep records of this property and control the actions of the management company. It is important to note that the specialized depository determines the value of the fund’s net assets, the estimated value of the unit and the number of units issued, thereby controlling the management company.

The rights of shareholders to a share of property in a mutual fund are taken into account in a register maintained by a special company - a specialized registrar (legislation allows a specialized depository to perform this function). The register records all information about the owners investment units and the number of units they own, information on the total number of issued and redeemed investment units. The register also maintains records of the purchase, exchange, transfer or redemption of units by the owner. As you can see, this important function of maintaining the register of shareholders is performed not by the management company itself, but by another organization - a specialized registrar. The correctness of accounting and reporting of the management company is checked by the auditor.

Thus, not one, but four organizations participate in the work of the mutual fund, which guarantees the reliability of the mutual fund. Management companies, special depositories and special registrars are licensed by the Federal Financial Markets Service of Russia, and auditors are licensed by the Ministry of Finance. Each of these organizations has strict requirements.

The principle of separating the management of shareholders’ funds from their storage is a unique mechanism that allows for high security for investors. It is thanks to this principle and strict control by the state that during the entire period of operation of Russian mutual funds there has not been a single case of deception of shareholders, not a single scandal. Truly this is a unique situation for Russia! However, there is a first time for everything, and the first bells already rang when, due to problems of the founders, two management companies were unable to continue their work. We are talking about the companies “Top Capital” and “ Oil and gas assets". These cases confirm that the younger the companies, the more dependent they are on funding from founders and the greater their risks.

For settlements on transactions related to the trust management of a mutual investment fund, the management company has separate bank accounts. Shareholders transfer funds for purchased shares to these accounts. The interaction scheme between the parties involved in the work of the fund is as follows:

1. The investor submits an application for the acquisition of investment units to the management company or through the fund’s agent for the acquisition and redemption of units and transfers the money to the fund’s account.

2. The management company sends documents to a specialized registrar, where a register of shareholders is maintained, for crediting shares to the investor.

3. The registrar sends the investor a notice of the acquisition of shares.

4. The management company gives an order to the broker to purchase securities and transfers money. Brokers purchase securities on the stock exchange.

5. The purchased securities are transferred to the fund's account in the depository, where the securities are recorded and stored. 6. The depositary credits the securities to the fund account.

What is a share

When depositing money into the fund, the investor becomes the owner of the share. But the shares are not issued in person - now almost all securities exist in book-entry form, and the rights to investment shares are recorded on personal accounts in the register of investment share owners. The register of fund shareholders, as you already know, is maintained by a specialized registrar or a specialized depository. They record the number of shares of each shareholder and issue shareholders with extracts from the register as confirmation of their ownership rights to the shares.

As stated in the Federal Law “On Investment Funds”, an investment share is a registered security certifying its owner’s share in the ownership of the property that makes up the mutual investment fund. The share gives the right to demand from the management company proper trust management mutual investment fund and the right to receive monetary compensation upon termination of the fund's activities.

The investment share also gives the owner the right to demand from the management company the redemption of the investment share and payment of monetary compensation in connection with this.

The owner of investment units can dispose of investment units in the same way as any other security. They can be sold, donated, bequeathed, inherited, left as collateral, etc.

An investment unit has no nominal value, and the number of investment units belonging to one owner can be expressed as a fraction. When an investor becomes a shareholder in a fund, he does not buy a whole number of shares, but simply contributes to the fund any amount of funds not lower than the minimum amount determined by the management company for each fund. A certain number of shares is recorded in the shareholder's account, which is determined by dividing the amount of funds contributed by the shareholder by the estimated value of the share on the day the entry is made in the register (the amount is reduced by the amount of the premium). For example, on a personal account it may be recorded that the shareholder owns 325.23456 shares.

The number of units in open-ended and interval funds is not limited. The management company will issue as many shares as the funds contributed by shareholders throughout the entire life of the fund. In a closed-end fund, the number of shares is limited by the management company for the entire period of its operation.

For each fund there are two important indicators. The first indicator is the estimated value of the share. Based on the estimated value of the share, the management company issues and redeems shares. The shareholder's income depends on changes in the estimated value of the share. The second indicator is the net asset value (NAV) of the fund. NAV characterizes the size of the fund. Net asset value is determined as follows. The value of all fund assets (securities, deposits, cash, accounts receivable) and are subtracted accounts payable and reserves for future expenses and payments.

Based on the value of the fund's net assets, the estimated value of the share is determined. To do this, the NAV of the fund is divided by the total number of issued shares:

Estimated share value = NAV / Number of shares

The calculation of the net asset value and the value of the share is carried out simultaneously by both the management company and the specialized depository of the mutual fund. This is a necessary condition for the accuracy of the calculation, thus the depository controls the management company. After confirmation by a specialized depository of the net asset value and the estimated value of the share, the management company discloses this information to all interested parties.

It is important to note that the estimated value of a share of an open-end mutual investment fund is determined and published by the management company on a daily basis. The estimated value of a unit of an interval mutual investment fund is determined by the management company on a monthly basis, as well as on the last day of each interval for accepting applications from shareholders to carry out transactions with shares.

The value of the fund's assets changes under the influence of two factors - depending on how shareholders deposit and withdraw money from the fund, and on how market price securities in the fund's portfolio. And the estimated value of the share depends only on one of these factors – changes in the market value of securities in the fund’s portfolio. Management companies disclose information about the net asset value of funds. A graph or table of changes in the value of the fund’s net assets can be found on the company’s website or requested at the application office. But in this form, these data do not provide an idea of ​​why the fund’s NAV is changing – either the securities in the fund’s portfolio are growing (falling), or shareholders are actively buying (selling) shares.

If you compare the growth of two indicators - the estimated value of the share and the net asset value for any period of time, you can find out whether shareholders are investing money or withdrawing it from the fund. Thus, the NAV dynamics are cleared of the influence of changes market prices valuable papers.

If the increase in NAV is equal to the increase in the value of the share for the selected period of time, it means that the value of the fund’s assets changes only due to changes in the price of securities and there is no general trend in the purchase or sale of shares. Shareholders do not join the fund and do not leave it. If the increase in NAV is greater than the increase in the value of the share, it means that the balance of sales of shares is positive - shareholders buy more shares than they sell. This does not in any way affect the results of fund management by the management company and does not in any way affect other shareholders (especially if the fund is large and has many small shareholders). But these data give us an idea of ​​how other shareholders assess attractiveness of this fund and the current situation on the securities market, as well as how actively the management company attracts shareholders.

How does a shareholder receive income?

The shareholder's income consists of the increase in the value of his shares. The value of shares may either increase or decrease over time as the market value of the securities included in the fund's assets changes. That is why holders of investment units bear the risk of losses associated with changes in the value of the units. The fund's profitability is not guaranteed either by the state or the management company. The management company also does not have the right to provide any guarantees, promises or even make assumptions about the future efficiency and profitability of its investment activities.

Owners of shares of open-ended and interval mutual funds are not accrued or paid any income in the form of interest or dividends. The shareholder receives income only when the shares are redeemed by the management company or when the shares are sold on the secondary market (of course, if the value of the shares has increased and covered all the shareholder’s expenses). In closed mutual funds, periodic payments can be established, a kind of analogue of dividends.

Purchase and sale of shares

After submitting an application and receiving money into the fund’s account, the investor opens an account in the register of shareholders, where the shares purchased by him are credited. The register of shareholders is a system of records that keeps records of who owns and how many shares.

Confirmation of the purchase of shares is an extract from the register. When redeeming shares, the shareholder submits an application for redemption of shares to the management company or any agent of the fund. An entry is made in the register of shareholders that the shares have been redeemed, and the shareholder is transferred money to his bank account. The shareholder is also given an extract from the register.

We have now looked at the purchase and sale of shares in the primary market. Mutual fund units are securities and have free circulation on the market. They, like any security (stocks, bonds), can also be bought or sold on the secondary market, either from a friend or through a broker. Imagine that in your city there are no management companies or agents for buying and selling shares. Or you need to sell shares of an interval fund without waiting for the interval opening period. In both cases, secondary circulation of shares will help you.

Secondary circulation of shares differs from primary circulation in that transactions with shares are carried out not through the management company, but with other owners of shares, for example, through brokerage companies. The mutual fund management company does not participate in these operations. Transactions with units in the secondary market can be made both on the exchange and off the exchange.

Buying and selling shares on the stock exchange

In 2003 at stock exchange The RTS and the Moscow Interbank Currency Exchange began secondary exchange trading of shares of some mutual investment funds. This means that mutual fund shares are among those securities that are bought and sold on the stock exchange. Exchange trading of shares allows investors to buy shares of investment funds regardless of their territorial location. The organization of exchange circulation of shares also creates additional features for investors who invest in interval funds, since you can buy and sell shares on the stock exchange at any time, and not only during the opening period of the interval established by the management company. Thus, investors can exit these funds at any time, locking in profits.

Exchange trading is even more important for closed-end mutual funds. The organization of secondary circulation allows investors to sell shares of closed-end real estate funds without waiting for the end of the fund's life. It becomes easier to buy shares. If the minimum amounts for the formation of real estate funds are millions of rubles, then on the stock exchange private investors will be able to buy shares for significantly smaller amounts.

Shares of 10 funds are traded on the RTS exchange under the management of 4 management companies: Interfin CAPITAL, OLMA-FINANCE, Otkritie, Troika Dialog. Shares of almost 80 funds under the management of 39 management companies are traded on the MICEX exchange. The circulation of investment units on exchanges is organized according to the same scheme as trading in shares and corporate bonds. To purchase shares on the stock exchange, you must contact a broker who has access to these trading platforms, conclude an agreement for brokerage service, open an account with a broker and deposit money into the account. You can make transactions with shares via the Internet and the trading system, as well as by giving instructions to the broker directly or by phone.

Exchange trading of shares is just beginning to develop. Transactions with shares on the stock exchange are still quite rare. The main problem with exchange trading of shares is the small number of sellers and buyers who are ready to make such transactions. The exchange market for shares is illiquid. This means that there are few offers for the purchase and sale of shares at the auction, the difference between the offer and demand prices can be several percent, and the price of transactions differs unfavorably from the price calculated by the management company. All this makes exchange trading of shares unattractive for investors. As the liquidity of the exchange market increases, transactions with shares on the exchange will have their advantages over the purchase and sale of shares through a management company.

With the traditional sale of shares on the primary market, you need to submit an application to the management company, in about a day an entry will be made in the register, then it will take a few more days (up to two weeks) to transfer the money to the shareholder’s account. In the case of an interval fund, this process is extended over an even longer period.

When making a transaction on the stock exchange through an online broker, the operation will take a few seconds, and the money from the sale of shares will immediately go to your account with the broker. And the money will be transferred to your bank account by the broker in a matter of days. Although mutual funds are a long-term instrument, it never hurts to be proactive, especially if force majeure events occur in the stock market, such as a drop in the stock market as a result of negative political news. Exchange trading allows for this operational advantage.

Purchase and sale of shares on the secondary over-the-counter market

Buying and selling shares of interval funds only during the opening period of the interval is not very convenient. Many investors would like to trade interval fund shares on any given day. To do this, some management companies (for example, Uralsib, KIT Finance) organize secondary circulation of shares outside the exchange through any investment company or bank. This company (bank) sells and buys back shares from shareholders on any working day. During the opening period of the interval, the company (bank) buys and redeems shares in the management company. But the mutual fund management company itself does not participate in operations on the secondary market. The owner of the shares is another company (bank). To complete the transaction, the investor and this owner enter into a purchase and sale agreement.

Price for shares on the secondary

The market is formed as follows: every day the company (bank), which acts as the owner of the shares, sets its price for the share. This price may differ from the estimated value of the share determined by the management company by 1–2%.

When purchasing units on the secondary market, it is important to understand how ownership of the units is transferred and which custodian maintains ownership records for them. Two secondary circulation schemes are used. In the first case, when purchasing shares on the secondary market from the owner company, the shareholder opens a personal account in the register of fund shareholders. The selling company, on the basis of a share purchase and sale agreement, instructs the organization maintaining the register to transfer the shares to the account of the new owner. The same thing happens when selling shares on the secondary market, only now the order to transfer the shares to the new owner’s account in the register is given by the shareholder.

In the second case, the shareholder’s ownership of the shares is registered in the register of owners of investment shares on the personal account of the nominal holder. Another depositary acts as such a nominal holder. The nominee holder of securities is registered in the registry system. He is a depositor (i.e. shares are registered with him), but he is not the owner of these securities. The nominal holder himself keeps track of which of the shareholders owns how many shares. Only professional participants in the securities market - depositories - can be a nominal holder.

Units purchased on the secondary market can be redeemed at the management company during the opening period of the interval. To do this, the shareholder must submit an order to redeem the shares to the depositary - the nominal holder. The depositary, as a nominee holder, submits applications indicating the name of the owner of the investment units to the management company of the mutual investment fund, which carries out the redemption of the investment fund units. Money from the redemption of units is transferred to the account of the unit owner specified in the application for redemption.

Shareholder expenses

When investing in mutual funds, the shareholder incurs certain expenses. They can be divided into two groups: expenses that an investor incurs when purchasing and redeeming shares, and expenses that are reflected daily in the value of shares.

Let's look at the first group of expenses, since they are the most obvious. When purchasing shares, the shareholder immediately bears costs in the form of a so-called premium to the cost of the share. This means that shares are sold to you more expensive by the amount of the premium. You contributed 10,000 rubles to the mutual fund, the premium to the value of the share is 1%, in total you will only have shares in the amount of 9,900 rubles in your account. The surcharge is charged to reimburse expenses associated with the issuance of shares. When submitting an application to purchase shares to a management company, the premium goes to the management company; when purchasing shares through an agent, the premium remains with the agent.

Maximum size the premium cannot be more than 1.5% of the estimated value of the investment unit. In this case, the size of the premium, as a rule, varies depending on the amount contributed to the fund - the larger the amount, the lower the percentage of the premium. There are funds in which no premium is charged, for example, you deposited 30,000 rubles, and in your account you will have shares worth 30,000 rubles.

Similarly, when redeeming units, a discount is applied to the estimated value of the units. This means that you sell the shares for less than their current estimated value by the discount amount. For example, when selling 100 shares at an estimated cost of 500 rubles. and a 2% discount, the investor would receive the amount of 49,000 rubles. (excluding taxes).

The discount is charged to reimburse the costs of the management company or agent associated with the redemption of shares. The maximum discount cannot be more than 3% of the estimated value of the share. Typically, the discount is smaller the longer your money has been in the fund. After just six months, the size of the discount, as a rule, is significantly reduced. This is one of the reasons to invest in mutual funds for longer periods, at least six months or a year. This is how management companies regulate the investment period by the amount of the discount. Keep in mind that it is the holding period of the shares that will be taken into account. If you made several different purchases at different times, then the holding period for each portion of shares is calculated separately. When redeeming units, no further costs other than the discount (and taxes) will be charged.

The investment period is calculated not only from the date of purchase of shares, but also from the date of exchange of shares of one fund for shares of another mutual fund of the management company. When exchanging shares, the investment period is reset to zero, and the discount will be calculated based on the holding period of the shares of the last fund.

When exchanging units, no surcharges or discounts are charged. Allowances and discounts may vary between agents and management company. As a rule, agents have them a little higher. Premiums and discounts are determined by the management company; they are described in the rules of trust management of the mutual fund, including for each agent.

So, when buying shares you lose due to a premium (up to 1.5% of the amount), when selling shares you lose at a discount (up to 3%). Every day, shareholders lose part of the value of the share and other expenses that are collected by the management company from the fund’s property (i.e. at the expense of the shareholders). This is the cost of managing a mutual fund. They include remuneration for the management company, specialized depository, specialized registrar, appraiser and auditor. For reference: the amount of these expenses, according to the law, cannot exceed 10% of average annual cost net assets of the fund. In practice, competition forces managers to reduce management costs, so the average size The company's fee for managing a mutual fund is about 3%, more precisely 2.72%. Bond fund management costs are lower, averaging 1.78% for open-end bond funds. Managers' remuneration for managing equity funds is higher. For open equity funds it is 3.24%, for interval equity funds – 3.36%. Sometimes management companies determine their commission only based on the growth of the fund's assets. No growth – the management company receives no income. This method of calculating remuneration makes a company's income directly dependent on its success, and we are confident that competition will force more and more companies to use this particular option for calculating their remuneration.

VAT is charged on expenses. Typically, the rules of the funds indicate expenses already including VAT. But some companies indicate the amount of expenses without VAT. In this case, it is necessary to make an appropriate adjustment when comparing several different management companies in terms of the size of their costs for managing the fund.

It is important that all these costs are already included in the estimated value of the share, which is published by the management company. This means that they will not reduce the estimated value of the share and the investor's return on investment. In fact, the shareholder does not even need to know how much money is spent on managing the fund. The shareholder knows the final result of management - the estimated value of the share and will redeem the shares at this value.

There is no need to necessarily compare funds based on the management company's remuneration - the fund with the highest expenses can also bring greater profitability to the shareholder due to the growth of shares. But this characteristic should not be neglected either. As you know, past income is not guaranteed in the future, but it is inevitable that a larger amount of remuneration will definitely “eat up” a large part of the income.

The final results of the shareholder’s investment will be influenced by the increase in the estimated value of the share during the investment period, taking into account the withheld premiums and discounts.

Other possible costs are associated only with transferring money to the mutual fund bank account and will be charged by your bank. But even on these expenses you can save if you deposit money into the fund through the bank where the account of this mutual fund is opened.

What is a mutual fund? What does the rating of mutual funds look like? What does buying an investment share give?

If you have ever read or at least leafed through articles on the topic of passive income, you have probably come across the abbreviation “PIF”. A mutual fund is a mutual investment fund based on the trust management of investors' money.

Any citizen who has the money to purchase one investment share has the right to become a member of the fund. This document gives him the right to receive profits in the future when the value of his share increases.

About, how mutual funds work and how to invest in mutual funds In order to get maximum profit, I, Denis Kuderin, an investment expert, will tell you in detail in a new publication.

The most patient readers will receive a review of profitable mutual funds and reliable management companies with the most favorable conditions cooperation, as well as advice on how not to lose money when investing.

So, go ahead!

1. What is a mutual fund

Investment funds are organizations with shared ownership aimed at preserving and increasing the assets of participants. This is a form of collective investment that allows everyone to earn money on effective financial instruments.

Why do private individuals need to give money to some fund? Why not invest directly, independently and without intermediaries? The reason is that not every person has the skills to invest competently.

Level financial literacy for an ordinary citizen of the Russian Federation is close to zero. Even if he has savings, he often has no idea what to do with them.

The most creativity can do is put money on bank deposit. But you yourself know that the profitability of such a deposit does not always cover inflation.

Keeping money at home means losing 5-10% per year of its value, or even more. The cost of goods and services increases almost monthly. At the same time, not everyone’s salaries are growing. What should I do?

Give money to those who know how to use it wisely and ultimately receive a profit that exceeds both inflation and interest on bank deposits. The assets of depositors are managed by the management company. It consists of professional financiers who are aware of which areas of investment will give maximum profit in the current economic situation.

It is more profitable to invest money in funds for another reason: the larger the capital, the more income it brings. In mutual funds, deposits are placed in a common pot and managed as one asset. This is much more profitable than operating with single deposits.

Mutual investment fund – Property Complex, based on the trust management of assets in order to increase their value.

Every owner investment share has the right to part of the mutual fund's property and repayment of its share. That is, he has the right to sell his share at the current price and withdraw money from the fund.

The management company undertakes to manage the assets of investors - to invest them in order to multiply them. The choice of investment instruments depends on the type of fund. The investor has the right to choose a mutual fund based on his personal preferences.

The funds work with stocks, bonds, precious metals, money markets, startups and other areas. For their work, management companies receive remuneration in the form of a fixed amount or a percentage of income.

Let me explain with an example

You and three of your friends have decided to buy a young apple tree from the owner of an orchard, so that in a few years, when the tree begins to bear fruit, you can enjoy the delicious fruits, rather than buying apples at the market. This tree is your investment fund.

The owner of the garden will take care of the apple tree and receive several kilograms of fruit from each harvest. You and your friends will fairly divide the rest of the apples among you.

The owner of the garden (management company) is interested in ensuring that the tree grows healthy and produces a generous harvest. Therefore, he takes care of the apple tree, fertilizes the soil around it, protects it from pests, and waters it.

When you want oranges instead of apples, you will sell your share to friends or the owner of the orchard and buy an orange tree. Perhaps in another garden - that is, in another mutual fund.

The first mutual funds appeared in the United States in 1924, but investing in funds managed by professional managers reached a real boom in the 50s.

In Russia, mutual funds appeared at the dawn of their formation market economy in the 1990s. Now there are hundreds of independent funds and the same number of management companies in the country. The activities of mutual funds are strictly regulated by law and government agencies.

Let's list all the advantages of mutual funds:

• a huge selection of investment instruments and directions;
• control at the federal level;
• higher income compared to bank deposits;
• relatively low risks;
• professional asset management;
• transparent structure of the organization;
• current financial operations funds are not taxed;
• low entry threshold - in some funds, shares cost from 1000 rubles;
• At any time, the shareholder has the right to sell his share and withdraw the money.

There are also disadvantages. The risk, although low, is still there. If you make a mistake in choosing a mutual fund, you will not receive any income. At the same time, the management company will still take money for its work.

Although the activities are controlled by the state, there are no legal requirements regarding the profitability of the funds.

Another way to jointly own property is.

2. What are the types of mutual funds - an overview of the TOP 3 types

There are several classifications of mutual funds.

They are divided by type of management, availability of deposits, and area of ​​activity.

All mutual funds operate according to the same scheme:

1. Participants contribute their share to the common pot - they buy shares according to their available funds.
2. The management company (MC) invests money in promising investment projects.
3. Profit from turnover is distributed among shareholders.

Funds can be open, closed and integrated. Decide right away which structure suits you best.

Type 1. Open-end mutual fund

Open-end funds practice free sale and purchase of investment units. You can become a member of the fund at any time if you have the desire and resources. The number of shareholders is not limited in any way. Such structures invest their assets in highly liquid and reliable instruments.

View 2. Closed mutual fund

Closed-end funds are designed for strictly defined periods. Shares are sold to participants immediately after the opening of the mutual fund, after which sales cease. You cannot withdraw funds before the end of the investment period, but you can sell shares to other participants.

Closed mutual funds usually specialize in a specific area of ​​investment. For example, they invest money only in real estate (often at the construction stage) or in innovative projects.

Sometimes it's kind of private club, created for specific projects. The cost of shares in such funds often amounts to millions of rubles, so only wealthy investors become shareholders.

View 3. Interval mutual fund

Interval funds sell and redeem investment units strictly within certain periods. This happens at least once a year. Such organizations work mainly with securities - they trade professionally on stock exchanges.

By area of ​​investment, mutual funds are divided into:

• equity funds;
• bonds;
• real estate;
• money market;
• credit;
• index.

The most popular type is securities funds.

The table shows the main criteria for distinguishing between open-ended, closed-end and interval-type funds:

Read other articles about passive income - “” and “”.

3. How to invest in mutual funds - step-by-step instructions for beginners

Every investor should first decide on the purpose of investment. Decide for yourself what kind of income you need - fast, stable, reliable, as high as possible? Only then choose a fund. And remember - the higher the income, the higher the risks.

Decide on the timing of the investment and the amount of assets. Mutual funds do not guarantee a fixed annual profit; they are not banks. Success depends on many variables - market conditions, professionalism of the management company, economic situation.

If you have already solved all the preliminary questions, proceed to investing. Here's a step-by-step guide.

Step 1. Choosing a management company

Managers will take care of all the management of assets and making a profit. Professional companies rarely engage in direct deception of investors. The law prohibits such structures from making unreasonable promises to investors.

Each company usually has several mutual funds. Diversification - the distribution of funds in different areas - reduces risks and allows you to use different investment strategies.

When choosing a management company, pay attention to the following parameters:

• number of funds under management – ​​the more, the better;
• commission size;
• total profitability;
• management policy - choose companies that combine high-risk and conservative instruments;
• time on the market;
• company rating in reputable agencies (“AAA” - the highest indicator in the National Rating Agency, “A+++” - maximum reliability in RA “Expert”).

Also take a closer look at how profits are distributed. If a company is too generous in rewarding investors, it may be that it is less interested in making a profit than in attracting new participants.

In such organizations, income is generated not from promising investments, but from a constant influx of money. What does it look like? That's right - on financial pyramid. Stay away from such companies.

Step 2. Opening a bank account

Money is transferred to the fund through a bank account. The company will transfer funds to the same account when you decide to repay your investment share.

When choosing a bank, pay attention to the percentage that the institution takes for financial transactions to the account of the management company. The smaller it is, the better, of course.

And the best option is when the management company and the bank are part of the same financial group (for example: Alfa Capital Management Company - Alfa Bank). In this case, you will not be charged any money for the transfer.

Step 3. We fill out an application for multiple purchases of shares

The next stage is a visit to the management company with a passport and mutual fund details. Submit an application for the regular purchase of investment shares and become a full participant in the fund. If you are doing this for the first time, you need to fill out a registration form.

An agreement is concluded between the investor and the management company. I think there is no need to remind you that before signing any official documents, you need to carefully read them inside and out.

Step 4. We transfer money to the account of the management company

All that remains is to transfer the money to the management company’s account. Indicate the application number, date, your last name and initials in the payment purpose.

Each fund has its own minimum amount. In mutual funds aimed at private investors, this is 3-5 thousand rubles. There are organizations where the minimum contributions are 100,000 and above.

Step 5. We receive a notification about the transfer of shares to the investment account

During a personal visit, you will receive a notification about the receipt of funds in your investment account in 5-7 days. If this document arrives by mail, you will have to wait 10-14 days, depending on the efficiency of the postal service.

One more thing passive way for earnings, read the article “”.

4. Rating of mutual funds with favorable terms of cooperation - review of the TOP 3 popular ones

Let's move on to a review of the most promising companies and funds under their management.

Compare, choose, purchase investment units.

The Uralsib management company was founded in 1996. The group manages mutual funds and non-state pension funds. The total number of shareholders at the time of writing is 52 thousand people. Invests in the most reliable and profitable areas.

Deposit sectors:

• energy;
• Natural resources;
• growth stocks;
• Eurobonds;
• gold;
• global commodity markets.

The cost of a share ranges from 5 to 25 thousand rubles. The shareholder has the right to independently choose the background and determine the direction of investment. The largest mutual fund from the management company today is Uralsib First. Designed for investors focused on long-term asset growth.

"Opening" - brokerage company, dealing with securities, stock exchange operations, and investing. Clients of the company who wish to become shareholders of mutual funds have the right to choose the most promising funds investment directions. The most popular instruments are stocks, bonds, foreign market funds, stock indices.

The cost of a share in various funds ranges from 900 to 2,500 rubles. Available mutual funds are “Raw Materials”, “Eurobonds”, “Foreign Property”, “Foreign Shares”. Recommended investment periods are from 1 year or more.

The management company "Gazprombank" works with individuals, insurance companies, non-governmental pension funds, cultural and educational organizations. At the time of writing the article, the company manages 11 open mutual funds, 6 closed and 1 interval. Included in the TOP 3 largest management companies in Russia. Has the highest reliability rating of AAA, assigned by the National Rating Agency.

5. How not to lose money when investing in mutual funds - 5 useful tips

Some tips for novice shareholders.

Follow them, and the risk of losing funds will be significantly reduced.

Tip 1. Keep an eye on the stock market

You need to buy and sell investment shares on time. The best time to buy mutual funds is after prices fall. Don’t be afraid of temporary price fluctuations: if you want to get the maximum profit, count on long-term investments.

Tip 2. Choose the most reliable mutual funds

If you want to sleep peacefully, choose reliable funds with a conservative investment strategy. Which mutual funds are the most stable? These are bond funds, mixed funds and funds of funds.

The advantage of mutual funds is their information openness. All interested parties have the right to familiarize themselves with data on the size of assets, the current value of the share, and investment operations. Do not neglect the client’s right to information and do not hesitate to ask questions to managers and operators.

If you want to reduce risks, divide your assets into different mutual funds or even different management companies. If you have a lot of eggs and a lot of baskets, the likelihood of losing your savings will be reduced to a minimum.

Tip 4. Improve your investor skills

Passive income is definitely great. But if you want to get more, become qualified investor. Read specialized literature. For example, "Rich Dad's Guide to Investing" by Robert Kiyosaki or " Smart Investor» Benjamin Graham.

Good day, dear subscribers of my blog. In order to at least have an idea about them, the types of investments, and not a small amount of money to fill it efficiently.

But such an invention as a mutual investment fund (UIF) allows any of us to participate in a professional investment portfolio with your own money. I will tell you how to invest in mutual funds, what it is in principle, in today’s article.

In short, a mutual fund is a type of collective investment that allows you to purchase part of a mutual fund (share) in order to receive and distribute profits between investors (shareholders) on the assets purchased in the fund in proportion to the number of shares.

In simple words, a management company collects money from investors, uses it to acquire assets (, etc.) at its discretion, manages them with the help of professional managers, and distributes the fixed profit among participants (shareholders).

Mutual funds are usually classified according to investment areas as follows:

• Equity funds - consist, as you guessed it, exclusively of shares of public and non-public companies. Such mutual funds are considered the riskiest of all types of funds, but at the same time potentially the most profitable
• Bond funds, on the contrary, are the least risky due to the low price volatility of this type of securities
• Mixed investment funds combine instruments with different returns and risks in certain proportions. These may include stocks, government, municipal or corporate bonds, as well as money market instruments such as deposits
• Money market funds invest investors' money in short-term bonds of companies and governments with high credit ratings, making a profit by increasing the market value and receiving coupon income, as well as on short-term deposits in the largest

The strategy of such mutual funds is designed for investors who need high portfolio liquidity, with moderate risk and returns that will cover inflation. Such funds are often organized by management companies banking groups, investing most of the shareholders' funds on deposits of their own banks.

For example, the Sberbank Money Market Fund (which, by the way, has already been merged with the Ilya bond fund) earned for last year 10%, and over 3 years - 25%, while the open-ended fund of shares "Dobrynya Nikitich" - 17% and 8%, respectively.

• Index mutual funds - purchase shares in the same proportions in which they are represented in leading ones, for example, the MICEX, PTC or the Dow Jones index. Compared to other funds, the costs of this type of mutual funds for analytical support and management are lower, since the composition of the portfolio changes relatively rarely, only when the components of the index itself are revised
• Mortgage mutual funds in Russia invest money in mortgage securities - mortgage-backed bonds and mortgage participation certificates, thereby financing the construction of new, mostly residential real estate

In the picture above you can see the current top mutual funds by volume of funds raised according to the portal investfunds.ru

In the United States, about 80% of residential space is purchased on credit, and the market for mortgage-backed securities is simply huge. In Russia, very few lenders are engaged in the securitization of mortgage debt, so our mortgage mutual funds are underdeveloped.

There are also so-called real estate funds ( Real Estate Investment Trust, REIT) - these are the same mortgage funds, only they, through collective investments (shares, interests), acquire real estate and manage them (construction, sale, rental), generating income for investors.

Based on liquidity (how quickly you can exit the fund), mutual funds are divided into:

1. Open - they buy back and sell their shares every working day, therefore they hold assets only in highly liquid instruments (government bonds, deposits, municipal securities, shares and bonds of Russian and foreign companies)
2. Interval - purchases and sells shares at least once a year, during the time period specified in the fund rules
3. Closed - sell shares when the fund is formed and buy them back at the end of the mutual fund

An investor can also sell shares on the secondary market, but this is very problematic in Russia due to the underdevelopment of this segment. The assets of closed mutual funds may include, in addition to highly liquid instruments, real estate and mortgage certificates, and other instruments.

In the picture above you can see the top 10 mutual funds by profitability for the period 2012-2015 according to the portal investfunds.ru

Advantages and disadvantages of mutual funds

Each type of mutual fund has its own advantages and disadvantages. Open-end funds have higher liquidity, but interval and closed-end funds usually provide greater returns, since it is easier for their managers to plan their investments over time. long term. At the same time, investors cannot withdraw their money from them at any time, but the operating costs for ensuring the operation of such funds are much lower.

In general, mutual funds have a number of common disadvantages:

1. If we compare mutual funds with bonds and deposits, the former undoubtedly have higher risks
2. The investor will have to bear additional expenses related to the registration and storage of investment certificates, constantly pay remuneration to the management company, regardless of the results of the fund. Typically, the amount of such remuneration ranges from 0.5% to 5% of the value of the mutual fund’s net assets
3. By law, mutual funds are required to comply with a certain asset structure, as well as follow the stated strategy. Such restrictions are not imposed on a private investor.

Let's say a downward trend has begun in the stock market. What will the average investor do? He will sell off the shares, fixing a loss, and buy them back cheaper, and an experienced trader will also short them to make money on the fall.

Mutual funds have little choice; they cannot sell off all shares or transfer most of the funds to the money market - the Central Bank of the Russian Federation monitors compliance with the asset structure and strategy stated in the fund’s investment declaration. On the other hand, it supports liquidity stock market and does not allow it to drop to zero. However, in such a situation, shareholders lose greatly to private investors, but again, only to experienced ones.

It is important to understand that no fund can guarantee future profitability, and past performance is not a guarantee of good results in the future. Therefore, when choosing a mutual fund, first of all, pay attention to the reliability of the management company, the investment strategy and the type of fund itself (whether you can quickly withdraw money), the structure of assets, and if it is a money market fund - in which bank, or which issuer’s bonds will be your hard-earned money is kept.

We’ve already talked about how to invest in mutual funds, but there will be even more in the next issues important information about which tools are best to use to make money. Subscribe now!