
Investing in an open ended investment fund
An investment fund is an institution that invests money collected from participants in various kinds of securities (e. g. shares, bonds, bonds, mortgage bonds) and property rights (e. g. real estate) in the mutual interest of fund participants.
However, funds benefit from special privileges granted to institutional investors, and the basic principle of investment policy is that potentially high returns must be achieved for the benefit of participants, with limited risk, by diversifying investments.
The investment fund in the statutes declares the purpose of its investment activity (acceptance of entrusted savings) and defines the investment strategy (in which securities and in what proportion the investors will be willing to invest), thanks to this the persons involved in the money fund know what profits can be made and what risks they can face.
An open ended investment fund may invest assets in: securities, money market instruments, investment fund participation units, bank deposits.
In order to raise funds for deposits, the fund sells shares without participation units restrictions.