Investment Secrets .equity fund

Investment equity funds are gaining more and more widespread.Against the background of the traditional distrust of citizens to domestic banks, stock exchanges and other similar structures are favorably allocated funds.In fact, they combine all the qualities that should have the ideal machine for the money.Working in strict accordance with the regulations, and federal law investment fund gives its members the following benefits:

• even distribution of risk, in other words - security;
• simplicity and ease - money work without the direct involvement of the investor;
• output availability of funds - money you can withdraw at any time equal to the cost of the investor at the moment;
• a large part of the profits that accrue from investment in the investment fund is exempt from tax;
• a high level of stable income.

What is an equity investment fund?

In simple terms, an investment fund is the depositary bank.Individuals and legal entities in making his money, receiving in return the securities.Depo
sitory Bank manages the money at its discretion.For this working group of experts who evaluate investment opportunities and make decisions on investing money.For these services the depositary disclaims investor usually from 1% to 5% of the profits and a small administrative fee.In comparison with the money received quite substantial income.

be understood that the free money the investor will not get one.Therefore, you should immediately clarify the duties size and delete it permanently from the list of income.To get really good money, do not get over with gold wither like Koschey.

But what about the risks?

By and large, the risks relating to investing in equity funds may be reduced to two basic:

• the risk that the "burst" the parent bank;
• the risk that the bankrupt one or more companies from the investment package.

First, we should consider the risk of bankruptcy of the parent bank.Theoretically it is possible.But the whole point is that the depositary bank operates completely independently from the parent bank.In case of bankruptcy, the depository bank assets in no way be affected and will remain intact.So it can not survive.

With regard to the risk of bankruptcy of any of the companies invested, there is everything quite simple.The order of investment recorded in the rules of the fund.Often equity fund has the right to invest in the same company for more than 10% of the property.Thus the "golden egg" is not kept in one basket, and to lose them at the same time is simply not possible.In the worst case - in addition, the least likely - the money invested in a dozen companies.At best, their number may reach several tens.As can be seen from this data, though the risks, but they are relative.

if possible losses when investing?

Dreamlike Life investment funds, however, do not promise.In some cases, losses are possible.But they are often caused by erroneous actions of investors themselves.Suppose the investor invested in an investment fund in 2008.Package price was quite high.And there was a collapse of interest rate by 15% in 2009.The situation is hypothetical and the facts are not tied, taken purely as an example.Investors panicked calls and gets their money back.It's clear that he is at a loss.

After a year or two, a package price has gone up and the shares purchased were worth more interest to 150% in 2008.Simple arithmetic.Do not withdraw money too quickly and at the wrong time.Investment Fund in its essence - a centipede.Tear off one leg and the load on the other will change, but the threat of life that does not bring.

What is the effect of the average cost?

In order to invest wisely, it is important to know and use the effect of the average cost.It is as follows.For example, an investor buys a monthly investment certificates for the same amount.Let us assume that this sum $ 100If the first month certificates cost $ 5, then the investor has bought 20 certificates.Next month certificates cost dropped to $ 2and an investor bought 50 certificates.In the third month, the price of certificates falls to a paltry 1 USD, the majority of investors in panic selling, and considered an investor buys.Now $ 100he bought 100 certificates.

In the fourth month comes warming stock exchange and certificates of return to cost $ 5By this time, the investor has invested $ 300and I bought 170 certificates.He took into account the dynamics of money and are now able to sell their certificates for 850 USDDecent earnings.It is not difficult to imagine what would happen if the investor had sold their certificates for 1 USD

Seven Tips novice investor.

• drop a course must be turned into advantages by using the average value of the effect;
• it is not necessary to rush and to transfer money from one fund to another - in this case, consistency is really a sign of professionalism;
• it is not necessary to exhaust yourself constant Calculation of profit and loss, should strike a balance on a regular basis, but not often;
• need to trust fund management, and professionals who work in it;
• optimum time to buy certificates to identify hard enough, why should I buy regularly;
• it is important to have a clear idea about the course, according to which the investment fund and move about the markets in which it invests;
• desirable to invest directly in a number of investment funds, this will help to optimally allocate risks.

most important thing is to absorb as much information about the joint-stock investment funds.There is no limit to perfection, so the investment needed to hone skills constantly.The higher financial education, the greater the income an investor will receive.The less likely it will be exposed.Good knowledge of the subject make you feel confident and reduce the loss of nerve cells.That in itself is important for good health and well-being.