Investment funds are IICs –Collective Investment Institutions– formed by the contributions of a variable number of investors, called participants. The fund is created by an entity, the manager, which invests these contributions in several financial assets (fixed income, equities, derivatives or any combination of these, etc.) following predetermined guidelines.
Thus, each participant owns a part of the fund's assets in proportion to the value of their contributions. Increases or decreases in the value of the equity are attributed proportionally to the participants.
The funds are regulated by regulations that limit the way in which the management company can invest the money, to ensure a minimum level of diversification, liquidity and transparency.
The type of assets in which it invests (investment policy) and the fund’s other characteristics (commissions, possibility of withdrawing money, risk assumed, time horizon ...), are contained in a document called an information prospectus and in the summary of the same KIID (Key Investor Information Document).
Visit our website to find out more about our Investment Funds.
Comments
0 comments
Article is closed for comments.