Along with a market economy, many economic concepts have come into our lives. One of them is an investment fund. He manages the investments of numerous investors. Manages their money for profit.
A check investment fund arose in Russia in the 90s as an economic tool for entering the market economy.
Circumstances of occurrence
During the change of economy from planned to market, an unusual investment tool arose.
To create private property in the country, the government decided to conduct general privatization. State property was divided into parts in monetary terms. For the entire working population of the country.
The possession of one such share was secured by a voucher - a government security. Vouchers were given free to those who worked. And you could buy them. Depended on the object, becoming the property.
A check investment fund was created to professionally manage the investments that these vouchers represented.
Contributions of the participants of the fund (investors) form its authorized capital. General funds are invested in circulation to generate income. This is the basis for the existence of an investment fund.
Privatization took place nationwide. All state property inherited by Russia after the partition of the Soviet Union was subject to it.
Privatization caused a huge amount of shadow fraud. The law governing the transition of state ownership to private did not exist.
The organization "People's Check Investment Fund" appeared in 1993. Everyone could enter there, if only a voucher was on hand.
About Voucher
Sberbank of Russia issued privatization checks. Unnamed government securities. Their number was accurately calculated. Owning them was allowed to any citizen.
Voucher Features:
- designated the value of 10,000 rubles;
- the price of its issue was only 25 rubles;
- the actual purchase price depended on supply and demand;
- purchase / sale is not regulated; the age of the buyer or his activity did not interest anyone;
- in exchange for a voucher, shares of funds or enterprises were given;
Having received a pack of vouchers, people felt like millionaires.
Nobody knew how to dispose of hypothetical millions of ordinary citizens.
Feature of the activities of the check fund
There are two main features of the work:
- Does not form a legal entity.
- The organization’s activities include trust management of deposits.
These features were inherent in all check funds that arose after the collapse of the USSR.
A man entered into an investment fund. His contributions were transferred to trust. Thus, he received an investment share, part of the fund’s income. This right was confirmed by the shares of the fund organization.
The documents of the "People's Investment Fund" did not spell out the obligation to repurchase own shares from investors. So did all the check funds in Russia in the 90s.
Similar organizations were financial pyramids. Check funds were not guaranteed to shareholders safety and return on investments.
Start of activity
It was possible to settle the establishment of check investment funds only in 1993. The creation of legislation in this area of economic activity has begun. It was assumed that in the conditions of market development, the created funds will begin to invest in industries and economic programs “like in the West”.
The People's Check Investment Fund was the largest.
Declared reliable safety of invested funds.He did not offer depositors to receive dividends on shares as a large return on investment.
Despite the apparent success (income from operations of 50 million rubles, 600 thousand investors), dividends were not paid.
In October 1998, the People’s Check Investment Fund was liquidated. Instead, an open joint stock company, the Popular Front, arose.
Depositors were invited to re-register. Proposals were sent out in ordinary letters and advertised in newspapers. Not everyone changed their certificates for the shares of the newly created company.
In 2018, the value of the shares of the People's Check Investment Fund, which is not, is zero.
Legislative changes
Documents of check funds did not indicate how to sell shares back to the fund. After all, the purchase of shares was prohibited by law.
In addition, in case of loss-making activities, the check investment funds themselves did not have the right to liquidate or reorganize. The law prohibited this for three years from the start of the organization.
The shares did not bring any dividends. The government concluded in 1996 that there was no effective legislative framework.
Unfortunately, the People’s Check Investment Fund failed. A huge number of investors lost their invested funds.
Since 1999, all check funds have undergone reorganization:
- in OJSC (open joint-stock company);
- in AMF (joint stock investment fund);
- in mutual funds (unit investment fund);
- merger with other organizations;
The form of reorganization of funds was chosen independently. Of the 700 check funds, only 166 investment organizations were again registered.
How it all ended
OJSC "People's Fund" issued for its investors Certificates of ownership of shares. And in 2006, a new reform took place: a merger with the joint-stock company Energotransbank.
Obligations to the shareholders of the People’s Fund passed to the bank. Investors became interested in how to sell shares.
The bank management provided an opportunity to exchange for bank shares. But do not forget that the amount in the Share Certificate is indicated before the 1998 denomination. So, it needs to be reduced a thousand times.
In 2015, the bank offered to buy back the shares of the Popular Front at 108 rubles per share. The purchase was carried out to reduce the number of shareholders without voting rights.
In 2017, when asked about how to get dividends on shares of OJSC Narodniy Front, the bank simply offered to participate in a meeting of shareholders.
Investing in our country is developing. More and more people are striving for this new type of economic activity. But first, it is advisable to deal with basic economic knowledge and the topic of investment.
