What is a Mutual fund

A mutual fund is a collective scheme, which is widespread in developed countries. Investors give their funds at the disposal of Mutual Funds for management, and they receive fund 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 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 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 on 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