Mutual investment funds in Russia, America and other powers of our planet - these are such organized means of citizens who have joined the association, which are transferred to the management company. Project participants are called shareholders. The management company manages the trust received on a trust basis in order to buy securities and other assets. All values that can be acquired are declared by applicable law. The regulatory acts have issued an exhaustive list of assets, work with which is currently considered legal.
To each his own
Trust management of mutual investment funds lies in the fact that in fact the owners remain the persons who invested their funds in the project. A company trusted by property management only controls operations, adhering to the idea of maximum customer benefit. The whole work process is clearly consistent with applicable laws, deviation from them is unacceptable and punishable in accordance with the codes of power. In addition, attention should be paid to specialized regulations issued by the FSFM. This state institution is responsible for regulating the financial markets within the country.
Although mutual fund management - the task of the licensed enterprise, mutual funds - not a legal entity. It is customary to call such a formation a property complex. Providing all participants with the maximum level of financial security is organized through the responsibility for the storage of resources assigned to one enterprise, but the management of these assets is entrusted to another company. To account for the Central Bank in our country, specialized depositories are created that are responsible for the safety of trusted property and control of transactions with funds. In order for the operation order to be carried out, it is necessary to issue permits for this event. Confirmation of correctness and legality is provided by the signature of the head of the Criminal Code, the official representing the depository and responsible for verifying the correctness of the actions.
Who is guilty?
Joint Stock Investment Fund and Mutual An investment fund has recently attracted the attention of a growing percentage of the population, since it seems to be a reliable option for investing with their increase in the future. At the same time, an individual, providing his finances with a reliable management company, can have no doubt in making a profit, even if he does not have a special education and does not at all focus on working in the financial market. Currently, the logic of enterprises in this area is such that several companies are simultaneously responsible for the operations performed. If mistakes are made during the operation of a mutual fund, the management company and the depository are responsible to the project participants with their property.
If you evaluate the work unit investment funds "GazPromBank”, Raiffeisen, Sberbank and other major representatives of this area of work with finances, you can see: the Criminal Code can only carry out an operation when it is carefully checked by the depository first. If there are features of the event that contradict the stock declaration, this legal entity simply will not give consent, which will lead to the blocking of the planned. This double level of protection ensures the interests of all project participants.
Division of responsibility
When planning open a mutual investment fund, the legal entity should be clearly guided in all the features of the work of such a method of managing funds, as well as in the specifics of interaction between enterprises and individuals who enter into interaction. In particular, it must be remembered that the depository does not have the right to dispose, use the property held by the mutual fund. This entity is solely responsible for property accounting transactions. In addition, the depository controls how well the management company operates.
Depositary Responsibility - Analysis net assets of a mutual investment fund. A legal entity formulates what their real value is. Based on a detailed analysis, it is determined how high the unit price is and how many units need to be issued. The indicators obtained from such calculations are used by the management company for balanced work, providing profit to all parties to the process. At the same time, through the figures obtained during the analysis, the depository can control the effectiveness of the management company.
Do I have rights?
Mutual fund is official structure, participation in which is strictly regulated by documentation. So that all shareholders can count on justice, a register of rights is compiled, where property shares regarding each person are clearly stated. The responsibility for maintaining the register is vested in the registrar. This is an enterprise that can be independent, but can only be a division of the depository. The law allows the unification of such functions within the same legal entity. The register contains complete, exhaustive information regarding the persons owning the shares, the number of shares in their property. Constantly updated and updated data on the issued, redeemed shares in the mutual fund.
When planning open a mutual investment fund, you should take into account the need to organize clear work, each operation during which is accompanied by documentation. In particular, information registers always record the purchase of a share, sale, exchange operations and transfer of shares. The Criminal Code does not have the right to keep such records, therefore operations are entrusted to the registrar. Regularly organized checks by regulatory authorities. Their task is to determine how successfully the laws are being implemented, the rights of all participants, the interests of shareholders are respected. The auditors examining the activities within the framework of the next audit control how accurately and correctly the accounting is organized, whether the statements are drawn up correctly, and whether the documents are submitted on time.
With common effort
As can be seen from the above principle of operation mutual fund management company, depository, registrar, controlling organization - persons closely interacting with each other. This provides the highest level of reliability of the organization as a whole. Registrars, depositories, and managing companies can work only with a certificate confirming the successful completion of the licensing procedure of the FSFM. To work as an auditor, an enterprise must obtain permission from the Ministry of Finance. The certification procedure involves checking for compliance with the criteria. The requirements, admittedly, are quite stringent, so starting work in this area is not easy. On the other hand, this approach provides the maximum level of reliability for individual shareholders.
Separation of management provides mutual investment real estate funds, stocks and other financial objects the highest level of reliability. Shareholders can participate in such an enterprise without fear of being deceived. The mechanisms can even be called unique. A rare type of investment can provide an equally high level of reliability. Control, adherence to principles, strict observance of laws and an audit organized by government agencies are the key to success.By the way, if we collect historical information, we won’t be able to find a single Finnish scandal related to the operation of the mutual funds within our country. At the same time, experts note that young enterprises face great risks. This is largely due to the dependence on the founders and the receipt of funds on their part.
Working moments
To mutual fund management company officially, successfully carried out the functions entrusted to it, it is necessary to have specialized accounts for conducting settlement operations. Those open in a reliable banking structure. Accounts are used by shareholders to transfer funds when acquiring a share of participation. There are clear work schemes declared by law.
As a rule, the workflow begins with filling out an application for the purchase of a share. The document is sent to the Criminal Code. You can use the services of agents. After that, the participant transfers the amount of money, and the management company sends the documentation, drawn up according to the model, to the address of the registrar responsible for the list of owners in order to transfer the share to the individual investment account. Next step of functioning unit investment fund (real estate, shares, etc.) - notification of an interested investor about the purchase of a share. The sender is the registrar. The management company sends the investment broker an order to acquire the Central Bank, transferring money for the operation. Based on the funds received, brokers implement operations. Acquired securities are received by the depositary, whose specialists take into account the incoming and are responsible for its safety. The depository shall credit the transferred securities to the stock account.
Pai: an overview
Mutual Investment Funds - an opportunity for anyone interested, with the appropriate financial capabilities, to acquire a share. The owner of such an object becomes a person who has contributed finance to a certain fund. An investor does not get anything into his hands, since there is a practice of formalizing the Central Bank in a non-documentary form. Personal accounts are used for accounting operations, and the registrar has a complete list of fund participants. The responsible organization fixes the number of shares at the disposal of an individual participant. If a person needs a document confirming his rights, he receives a specialized extract from the register, certified by the responsible officials of the registrar, depository.
The Federal Law establishes that a share is a securities issued to a specific name. Such a document, which is the basis for a unit investment fund, makes it possible to certify that a certain person has ownership rights to the share of the property forming the investment fund. Based on the presence of a share, it is possible to require the management company to manage the fund in accordance with the laws and interests of the participants. If the fund completes its work, the shareholder is entitled to compensation in cash. In the right of the shareholder is the disposal of this property, as well as other securities, stocks. Mutual Investment Funds allow their members to give shares, transfer them under the testament program, realize, use as collateral.
Details about shares
Studying mutual fund ratings, you must remember that the essence of the work of companies is approximately the same. In particular, the units purchased by participants are securities with no face value. It is not necessary to buy one or two, one hundred or one thousand shares, you can purchase a fractional quantity. A new participant, entering the investment program, contributes to the fund a convenient amount, but not less than the minimum. Responsibility for choosing the minimum contribution lies with the UK.
Upon joining mutual investment fund calculations on the number of units purchased are carried out by responsible persons from among the companies providing the mutual fund. In order to identify the amount needed to be credited to the account, you need to determine the current settlement price of the unit on the day when a new person is entered into the register.Amounts provided by the investor are divided by this value. You must subtract the amount of the premium. The obtained values are entered on the personal account. This can easily be a number with a large number of decimal places, for example: 150.56785.
Expectations from participation and reality
Planning to become a member mutual fund, it must be remembered that there are no restrictions on the number of shares if the mutual fund is organized as open, interval. The UK is entitled to issue shares in accordance with the finances contributed by investors. All contributions made during the period of the company’s activity are taken into account. If a mutual fund is organized closed, the number of shares is strictly limited. The CC monitors that the number of shares issued does not exceed the established limit.
Securities of mutual funds largely depends on the form in which a specific mutual fund is open. The more reliable the enterprise, the higher its securities are valued. At the same time, performance evaluation is carried out taking into account two significant aspects. In particular, you need to remember the estimated price of a share. UK repays, distributes shares, given this value. Its change determines the income component of the investor. Another significant aspect is net assets, their price, which describes how large the accumulated funds are. NAV (value of net assets) is revealed by summing up the assets owned by the mutual fund, less debts to creditors and reserves pledged for payments, expenses planned by the management company.
Figures and calculations
To reveal how big a share of a particular mutual fund, you must first determine the NAV, which is then divided by the total number of shares already distributed to investors. The calculation of specific quantities is the responsibility of the management company, the depository. These two legal entities independently determine the estimated unit value, after which the results are compared. This approach allows us to guarantee the accuracy of the calculations. The depository, by comparing the results obtained, controls how efficiently the management company operates. When all the results of the analysis are confirmed by the officials of the depository, the Criminal Code has the right to disclose information to third parties.
Updated information on the price of participation in open-ended mutual fund should be published every day. Responsibility for this lies with the Criminal Code. If the mutual fund is organized in the form of an interval, then in the scope of responsibilities of the Criminal Code is to publish updated data every month. By the time the next interval is completed, you will also have to make a calculation.
Dependencies and Benefits
The price of a stock asset changes regularly. This is affected by the activity of investors depositing and withdrawing their funds, as well as the price of the Central Bank, which make up the stock portfolio. In determining the estimated value of one share, the value of the securities in the portfolio must be taken into account. As a rule, information about NAV is published as tables, graphs. Normally, such can be found on the official website of the mutual funds. True, the current presentation does not allow interested parties to understand why the NAV changes, to what extent this is due to the sale, acquisition of shares, how much it depends on the quality of the securities portfolio.
Privately, an analysis can be made, having access to information regarding the price per share and NAV for the same time period. By calculating the difference in indicators, you can understand what the activity of other investors is - whether people take their money or, conversely, contribute to the mutual fund. NAV, changes in this indicator are practically independent of how prices on various positions change in the securities market.
Important point
In some cases, the increase in the NAV coincides with the value that the share price shows. If during the analysis of a specific time period such results were obtained, we can reasonably conclude: the NAV is changing due to the adjustment of the Central Bank value.There is no dominant trend - sales, acquisitions of shares in the fund, and investors do not leave the project and do not flow into it en masse.
If the NAV shows higher indicators than the share price, we can confidently talk about a positive balance in the sale of shares, that is, there are more shareholders acquiring rights than realizing them. The results of the management company do not depend on such activity; the trend will not affect the profits of the shareholders. Most characteristic is this lack of dependence for a large organization collaborating with numerous small participants. At the same time, a full-fledged analysis allows us to assess the extent to which an attractive project seems to outsiders. It can be concluded regarding the quality of work of the management company responsible for attracting new equity holders to the project.
About profit
The positive financial results that the mutual fund participant is counting on are due to an increase in the value of the units that he currently owns. From time to time, the price is then adjusted upwards, then decreases. Entering the mutual fund, every person thereby puts himself in a risky position - there is a probability of a loss-making result of such a decision. There are no real guarantees of the profitability of the selected project. UK, the state is not responsible for this. The Criminal Code does not have the right to guarantee anything, promise. This legal entity does not even have the right to make forecasts regarding the effectiveness, revenue component in the future.
If a person has decided in favor of an interval, open-ended unit investment fund, he cannot receive interest or dividends. Positive financial gain is due to the repayment of the Central Bank, the exercise of rights in the secondary market. At the same time, real profit is possible if the share price has become higher relative to the moment of acquisition of a share in the fund. If the mutual fund is organized in a closed form, the documentation of such a fund may contain a reference to periodic payments. These are comparable to dividends, although formally they are not.
Operating activities
Potential and existing investors have the right to purchase, sell their share, redeem the share. To do this, you will have to cooperate with the management company or an agent engaged in such operations. Buying a share in the primary market through an asset management company is the most common way to enter a company. An approximate workflow has already been described above, starting with the application.
The final stage for the shareholder is to receive a registry statement confirming his rights and property capabilities. Upon redemption of a unit, a record of this is recorded in the registry. Upon completion of registration operations, the required amounts are credited to the participant’s personal bank account, issuing an additional registry statement confirming the fact of the successful completion of the rules.
