What is a Mutual fund
Mutual fund is a collective scheme, which is widespread in the developed countries. Investors give their funds at the disposal of Mutual Fund for management, and they receive fund’s units in return. The number of units, owned by the investor, certifies what part of the amount of the assets of the fund is possessed by their owner. By the demand of the investors, the Fund redeems its units at a price, based on the net value of its assets. The activity of the Mutual Fund, including the asset management, is executed by the Management Company, which is licensed and permanently controlled by the Financial Supervision Comity. The Management Company has at its disposal a team of professionals in the field of the asset management and works in the interest of all unit-holders of the fund. The Management Company invests the raised funds in different financial instruments by risk diversification and in correspondence with the investment strategy, described in the Mutual Fund’s prospect.
Main types of Mutual Funds, depending of the investment strategy
Risk Mutual Fund – the assets of this fund are investments in equities.
Balanced Mutual Fund - assets of this fund are divided between investments in equities (up to 50%), bonds and securities.
Conservative Mutual Fund – the assets of this fund are mainly investments in securities, bonds and deposits
Investors should have in mind that the value of the funds’ units and the income from them may decrease, the profit is not guaranteed and they take up the risk of not recovering their investment in full. Before making a final investment decision, it is advisable for investors to familiarize themselves with the Prospectus and the Key Investor Information Document of the respective fund. The documents are in Bulgarian and they are available on the website of DSK Asset Management AD (www.dskam.bg), and upon request can be obtained free of charge on paper at the office of the Management Company or at the offices of the DSK Bank AD, designated as a distribution point, every working day within their working hours.