FAQ

What aspects should I take into account while selecting a fund?

The way to select a fund is similar to the general method of selecting an investment, whether it is a bank to open a deposit account, or real estate to purchase, or business worth to be invested in etc. The main criterion we recommend to use while selecting the fund is risk-to-income ratio of the fund that will suit you most.

How is my income formed?

You are a co-owner of the Fund and, consequently, of its assets. Your income is ensured by increase of net asset value of the Fund per unit (share or certificate).
The Asset Management Company invests the assets of the Fund in securities or other assets (depending on the investment strategy outlined in the documents of the Fund). Professional management of such assets allows the company to ensure the rise in asset value. The sources of the asset value growth are as follows:
А) interest or dividend income;
Б) income from trading of securities allocated in the Fund’s portfolio;
В) increase of market value of the assets allocated in the Fund’s portfolio (i.e. growth of market price of shares, bonds or real estate).
By the way. It is important to understand that the securities of the Fund have the same qualities as any other securities traded on the market. In particular, one of the features of the Fund’s securities is that its price is subject to volatility. During one period the price may rise quicker and during the other – slower and even decline. Thus, by monitoring the market you have the opportunity to buy securities on wane or just before a steep rise and sell at their peak receiving extra trade return, but taking additional risk.

Why don’t you guarantee returns?

By purchasing securities of the Fund you become a co-owner (participant) of the Fund, but not a creditor as in case with a bank deposit. The nature of ownership (participation) implies the right to influence the performance of the Fund and, respectively, participate in distribution of results of the Fund’s activity. Here one should understand that these results may be both, positive and negative. The legislation seeks to stick to the nature of investments of this kind and prohibits the AMC to guarantee any return on investment. Our task as an asset management company is to ensure the long-term positive results of the Fund’s activity.

How much can I earn?

Not less than the major market players. The Fund accumulates considerable amounts of assets comparable with the volumes of portfolios of commercial banks. Therefore, the Fund gets the opportunity to close deals under the same terms (the best quotations on the market, best rates on bank deposits) like major players. Respectively, the income level of the participants of the Fund increases.

How does the Company manage the assets?

AMC manages the assets of the Fund by buying and selling assets of different types (securities, real estate) and by placing assets on bank deposits. A set of assets represents the investment portfolio of the Fund. While taking the decision to buy securities an investment manager verifies the market value of the securities, i.e. their fair value, by measuring the true value and comparing it with the market one. If the true value of securities is higher than its market price, it means that the market price is understated and it’s necessary to discuss the issue of including the securities in the portfolio of the Fund. If the price is overstated, it’s better to exclude the securities from the portfolio.
The true value of securities is measured by means of two types of analysis: fundamental and technical.