Mutual Fund: how it works

Raiffeisen Aval Asset Management is going to launch investment funds soon!

Making an investment into Mutual Funds, independently on the sum of investment, you obtain the possibility to:

• receive profit, commensurable with profit of gross investors’ securities portfolio

• essentially broaden the spectrum of available investments instruments on the equity market, which will greatly reduce investments risks (diversification of portfolio);

• use the services of professional capital management team;

• to save time and efforts on optimization of the personal finance;

• reduce expenses, concerned with the process of investment.

The principle of asset management is incorporated in the basis of work of  Mutual Fund.

This means that:

• asset management company acts on the equity market on behalf of fund and in your interest;

• the Prospectus of the Fund defines the conditions of asset management agreement *;

• you become an owner of parts of property of a fund proportionally the number of bought units.

• your part of property of a fund is certified by uncertified security - investment unit.

*Prospectus of the Fund are developed by Asset Management Company on the basis of typical rules approved by legislation.

Mutual Fund may be opened, interval or closed. The main differences of the funds are:

Open fund:

• issue, redemption and exchange of units is taking place each working day;

• the cost of investment unit is calculated daily.

Interval fund:

• issue, redemption and exchange of units is taking place during definite time period, stated in the Prospectus of the Fund;

• the cost of investment unit is calculated monthly.

Close fund:

• issue of units takes place when forming the fund;

• in future, issue and redemption of units is available after the decision of general meeting of the unit holders.