How to raise sales
Sell ​​not the properties, but the benefits of your product. "People buy things not for the sake of the things themselves, but for the sake of what these things give…

Continue reading →

Which CMS to choose for an online store
In this article we will give recommendations when choosing a CMS and all the real pros and cons of different systems. There are different opinions on this matter, especially the…

Continue reading →

Calculation of cash limit
Calculation of cash limit To calculate the cash balance on hand, the following indicators will be required: Cash receipts for goods sold, services rendered or work performed, or revenue in…

Continue reading →

Investment in mutual funds

In order to make informed and informed decisions on the purchase or sale of shares, you need to acquire the necessary knowledge and skills, as well as some experience in the stock market. Often, some people do not have time for this, others are simply not interested in analyzing the stock market, and still others, realizing that investing in stocks is associated with a high level of risk, they want a more “safe haven” for their investments.

For such investors, the best option would be to invest in mutual funds, abbreviated as mutual funds. Such funds exist both in Russia and abroad, only there they are called Mutual funds – mutual funds.

So what is a mutual fund? Roughly speaking, this is a portfolio of shares circulating on the stock market, selected in a certain proportion by the management company. The function of the management company is to accumulate depositors’ money, invest them in profitable instruments (stocks, bonds), as well as adjust their shares in the fund depending on the current market situation. The fund is divided equally into conventional units (units), and by investing money in a fund (buying units), the investor does not buy a separate share, but part of the total package of shares of which the fund consists. This significantly reduces the risk of investing, since it complies with the rule of diversification (distribution) of funds across different types of assets. In addition, the investor himself does not participate in the management of the fund, this is done by the management company. This is another advantage of the fund – you do not need to be an expert in asset management in the stock market, a professional manages for you. Of course, the management company (hereinafter – MC) takes remuneration for their services, i.e., with each purchase of shares, the investor must pay an additional fee, but more on that below.

What are mutual funds?

Mutual funds are classified according to several criteria: by risk level, by type of securities that are acquired with the fund, by the degree of freedom of investors and so on.

The composition of securities mutual funds are of the following types:

Mutual funds shares.
Share mutual funds, as the name implies, consist of shares of companies (open joint-stock companies). Shares are acquired by the management company for money contributed to the fund by shareholders. When the price of shares included in the mutual fund increases (according to the results of trading on the stock exchanges), the price of the mutual fund shares also increases. When the stock price falls, the shares become cheaper. The task of the management company to buy shares, which should grow in price, and sell shares, which should fall in price. On how well the Criminal Code guesses (counts)? what shares to sell and what to buy, depends on the profitability of the mutual fund. Share mutual funds are the most risky type of mutual funds. Yields range from negative to high positive.

Mutual funds bonds.
Bonds mutual funds are the least risky investments, although they may be unprofitable, simply the probability of loss is very low. A compulsory low-risk satellite is low yield. The yield on mutual funds of bonds is about the same as that of bank deposits, 8-12%. Bond mutual funds can be used as a safe haven for capital during a falling market.

Mixed mutual funds.
Mixed mutual funds (mutual investment funds) are hybrids of stock mutual funds and bond mutual funds, i.e. they consist of both types of securities. Such funds have the most flexible strategies: they can consist of 100% of the shares during the market growth and 100% of the bonds during the fall of the market. In periods of uncertainty in the market, when it is not clear where the market will go tomorrow, such funds are the best option for capital investment.

Also mutual funds differ in the freedom of the shareholder to choose the time to buy and sell shares:

Open mutual funds.
If the mutual fund is open, you can buy, exchange and redeem units on any working day.

Interval mutual funds.
Interval unit investment unit shares can be bought, exchanged and extinguished only at certain fixed intervals several times a year (as a rule, two weeks four times a year).

Closed mutual funds.
Private mutual funds invest in such assets that cannot be partially sold in order to redeem the shares of one or several shareholders, and it is possible only to sell all the assets of the mutual fund and redeem all shares.

In addition, funds are industry-specific (for the money of the fund, shares of companies of any one industry are acquired, for example, oil or metallurgy), index (the composition of shares acquired with money of the fund copies the composition of shares of the MICEX index or RTS; therefore, such a fund increases or decreases in according to the index).

Investment in mutual funds
Every investor who invests his savings in mutual funds must understand that mutual funds are a “race for a long distance”; in other words – the funds give a tangible profit only for long periods of investment – from 5 years and more. Therefore, funds that you may need in a shorter period of time, it is better to invest in other assets, but more on that later.

How to deal with collectors
Reality and Fiction If you open forums and blogs of collection companies, you can see tons of material about “reprisals” with debtors. This includes gangster raids, and calls in the…


How to choose an idea for a home business
Have their own, albeit small, but stable business many dream. Working for hire, we always depend on the mood of our bosses, on financial and legal factors affecting the activities…


Famous people who made a hobby their profession
“Do what you like and you never have to work” is a truth that remains outside of time and location. To some, it seems to be unattainable, and someone has…


Packaging and labeling of goods
Trademarks appeared when it became necessary to separate manufacturers and sellers. Today, they perform the same function, denoting quality standards and features of the functional characteristics of goods manufactured under…