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The mutual
fund is an investment vehicle that is made up of a pool of
funds collected from many investors for the purpose of investing in securities
such as stocks, bonds, money market instruments and similar assets. Mutual
funds are operated by money mangers, who invest the fund's capital and attempt
to produce capital gains and income for the fund's investors. A mutual fund's
portfolio is structured and maintained to match the investment objectives
stated in its prospectus. The investment
activities of each mutual fund, including the management of its assets, are
carried out by a Licensed Management Entity, which is supervised by the Financial
Supervision Commission. The Management Entity invests the collected funds in
various investment securities on its behalf and at its expense according to the
investment objectives stated in the prospectus. The Management Entity has a
team of professionals in the field of investment management who work at the fund
investors’ interest.
Main types of investment funds
These funds are intended for investors who would like to invest in low-risk financial instruments. Money market funds invest predominantly in short-term, low-risk money market instruments, including deposits, treasury bills and other short-term securities.
These funds
are intended for those
investors who seek a potentially higher return than that earned by money
market funds and are prepared to accept minor oscillations in fund unit value. Bond Funds invest
predominantly in bonds.
These funds are intended for all who are prepared to accept greater oscillations in fund unit value at a potentially higher return. Balanced Funds invest in various asset classes, predominantly bonds and stocks.
These funds are intended for all investors who are prepared to accept a high risk at a potentially high return. Equity funds invest predominantly in stocks.
Investing in mutual funds involves certain risks. The value
of the shares and the
income from them may go down. Profit is not guaranteed and there is a risk for
investors may not recover the full amount of money. Investing in Mutual Fund
are not guaranteed by the Guarantee Fund, established by the State or any other
warranty. Future performance of the contract funds are not necessarily
associated with results from previous periods.
The presented
information should not be considered advice for investing in financial instruments,
including units of mutual funds, offered by Raiffeisen Asset Management
(Bulgaria). It is recommended for investors to first familiarize themselves
with the prospectuses of the funds and the rules for Mutual funds before taking
any investment decisions. The full prospectus and additional information for
the funds can be received in any of the offices of Raiffeisenbank (Bulgaria) as
well as on the website of RAM www.ram.bg. |
