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Open ended investment fund

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.

Open ended investment funds 

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. These are non-securities financial instruments. They may not be traded but inherited. At the same time, the Fund is obliged to redeem participation units at the request of fund participants. At the moment of redemption, their redemption takes place by force of law. Therefore, in an open ended investment fund, the number of participants and participation units is constantly changing.

The valuation of the fund's assets is carried out at least on each day of sale or redemption of participation units. In order to determine the value of one share, the net asset value of the fund is divided by the number of participation units existing at the measurement date.

An open ended investment fund should maintain an appropriate cash balance necessary to carry out the current disbursements to fund participants presenting participation units to be redeemed.

An investment fund publishes open ended current reports and periodic reports - quarterly, semi-annual and annual - containing financial reports.

Specialised open ended investment funds 

Specialist open investment fund is an open end investment fund. The offer to purchase participation units of such a fund may be addressed to a specific group of people, e. g. institutions or members of pension schemes. Additional conditions concerning the redemption of participation units may also be introduced in the fund's statutes.


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