How to choose the Fund?
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Choice of the Fund is in many respects similar to choice of investments object in a whole, whether that is the choice of bank for opening depositary account, choice of real estate for purchase, choice of business in which it is necessary to invest etc. Basic criterion by choosing the Fund (which we recommend to use) is a parity of risk and profitableness of this or that fund which suits exactly your needs. |
How is my income forming?
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You are the co-owner of Fund, so as well as of its assets, and your income is provided by an increase in value of net assets of Fund for 1 share (share or certificate).
Asset Management Company invests Fund’s means in securities or other assets (depending on investment strategy registered in documents of Fund). Professional management of these assets allows the company to provide growth of their worth. Reasons for growth of the Fund’s assets worth are:
À) receipt of interest and dividend income;
Á) receipt of income from trade with securities being in the Fund’s portfolio;
Â) Gain of the assets’ market worth which are in Fund’s portfolio (for example, growth of shares’, bonds’ or real estate’s market worth).
By the way. It is important to understand that Funds’ securities have the same properties as any other securities outstanding on the market. In particular, one of the properties of a security of Fund consists in the fact that the price for it is subject to fluctuations. During one period it can grow faster, another time - more slowly, in the third - decrease. Thus, by tracing situation on the market you have a possibility to buy securities on recession or before fast lifting, and sell them on peak, receiving, thus, additional trading income, but accepting additional risk. |
Why do not you guarantee profitableness?
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By buying Fund’s securities, you become the co-owner (participant) of Fund instead of the creditor as in the case with the bank deposit. The nature of possession (participation) is that it grants you the right to influence Fund’s operation and accordingly participate in distribution of results of Fund’s activity. In spite all of this it is necessary to understand that these results can be both positive and negative. The legislation taking into account the nature of the given kind of investments forbids AMC to guarantee any profitableness from investments into Fund. Being an asset management Company our task is to provide positive results of Fund’s activity during long period of time. |
How much can I earn?
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Not less than large players on the market. Enough great volumes of means in comparison with the volumes of portfolios of commercial banks are accumulating in Fund. Accordingly the Fund has an opportunity to conclude transactions on the same conditions (better quotations on the market, better rates under deposits in banks) as large players do. Accordingly, level of the income of participants of Fund raises as well. |
How does the Company manage Fund’s assets?
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AMC carries out Fund’s Assets Management by buying or selling these or that assets (securities, real estate) and placing means on deposits. Set of these assets represents an investment portfolio of Fund.
At decision-making on purchase of security the investment manager defines to what extent a security is correctly estimated by the market, that is, whether its price is fair. For this purpose he estimates true worth of a security and compares received result with the market price. If true worth of a security is higher than the market price states, it means that the price on the market is underestimated, and it is necessary to consider the matter of inclusion of such a security into the Fund’s portfolio. If the price is overestimated, then question of an exclusion the security from portfolio is considered.
True worth of security is defined with the help of two kinds of analysis: fundamental and technical. |
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