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What is a mixed investment fund? Description and definition of the term

A mixed investment fund is a fund that is chosen by those who want to settle on something between bond and stock funds where investments are made.

These funds are the most suitable for people starting activities in this area.

It is possible to understand the rate of efficiency with which mixed funds operate by comparing stock market indices (MICEX, RTS), inflation rates and share price growth.

The use of mixed funds allows you to diversify your strategy. When the market falls, they can be made up entirely of bonds. During growth, it can only be stocks.

Mixed investment funds represent a compromise between average risk and average return. The policy is carried out accordingly, accepting the availability in the portfolio of both connections and shares.

How legislation regulates mixed funds

The transition from connections to shares is fully compliant with the law. The origin of this is that mixed investment funds have found use as a tool for playing a fluctuating market.

When an investment fund of a mixed nature is effectively managed, and this has led to a preliminary assumption of the dynamics of the market, which is all the chances after some time to be among the leaders, while overtaking at the same time on the weasels of stock returns. However, it should be noted that the degree of risk in the area of ​​such funds is higher than in a regular client. In this case, the refusal of the game on fluctuations in stock prices, the comprehensive use of various tools and methods based on technical analysis is assumed.

According to the Instructions on the structure and structure of assets of joint-stock investment funds and assets of mutual investment funds, adopted by the Federal Financial Migration Service on December 28, 2010, mixed investment funds can include up to 100% of shares and 100% of connections.

The rules of such a fund provide the management company (MC) with quite a lot of flexibility in choosing an investment strategy. With economic growth, there is an opportunity to invest money in stocks and make the biggest profits from their growth. When the stage of economic cycle changes, there is the next one. The stock market stops or even decreases significantly. During this time, executive directors make decisions and commit money to debt securities.

In this way, a mixed investment fund allows the investor to avoid the so-called “skew” of the portfolio in tough times – which is, protects money from serious losses. Of course, provided that the management company recognizes the change in the market situation on time and takes appropriate measures.

In practice, at the level of profitability, FSMs show worse results during market growth than equity funds - on average by 5-10%. But for him, the investor also receives a certain advantage. Thus, from January to July 2011, the stock market did not have the best times. The result of the investment was as follows: Weasel stocks fell in price by an average of 7.5%, relationship funds rose by 5%, and FSM portfolios became cheaper by only 2%. This - connections in the portfolio of executive directors, practically compensated for the fall in equity securities.

Russia mixed funds is the “Team” (British “Troika Dialog”) with assets of 1.6 billion rubles, “Alfa-Share” (British “Alpha-Share”) – 1.3 billion rubles, “Gazprombank” (British “Management”) assets of Gazprombank”) Balanced” – 1 billion rubles and others.

Advantages of mutual fund VTB

Before investing your savings in the purchase of shares, a future investor should familiarize himself with information about the most profitable areas for investment. Read reviews about the selected management company, as well as about the competence and professionalism of its employees.

VTB Mutual Fund has the following advantages:

1. VTB Capital offers the most popular mutual funds today. Most of them occupy leading positions in the lists of the most popular investment instruments, which helps to obtain higher income.
2. The profitability level can reach up to 32%. This percentage is a clear plus, which undoubtedly attracts citizens.
3. More than 10 years of experience in this segment allows us to judge the professional knowledge of VTB’s investment experts. Demand among investors is growing from year to year.
4. VTB Capital offers its investors a lower commission percentage, which is more than offset by high returns.
5. Customer support is provided quickly and efficiently. It is possible to resolve the issue over the phone using a toll-free hotline. The client can contact the support service for help on the official website of VTB Capital.
6. An expanded branch network and presence in almost every city of the Russian Federation is a significant advantage over competitors.

Taxation

For individuals, a thirteen percent tax is included in the payment. This makes a difference between the value for which the shares were purchased and what their settlement was for.

In 2014, for individuals who own three years or more of this term in the event of tax accumulation, a tax deduction was introduced. This measure is prescribed to increase the circulation of the fund for thinking about long-term investments.

Since mixed funds are structured, part of the assets there can be not only Russian and foreign currencies, but also other property:

• various debt instruments;
• shares and shares of investment funds having foreign registration;
• shares of funds shares, shares of joint stock funds that are engaged in investments;
• shares foreign and Russian open joint stock companies, which are fully paid.

Because the asset structure of a mutual fund based on mixed investment certain conditions must comply with:

• the price of the securities must not fall lower than seventy percent of the value of the asset during the time specified for two-thirds of business days for the calendar quarter;
• the funds available in deposits of one credit institution should not exceed a quarter of the value of the asset;
• the value at which shares of foreign, joint-stock investment funds, shares of mutual funds are valued will not be higher than fifteen percent of the value of the asset.

Comparison of profitability of mutual fund VTB 24

The table below provides summary information on all mutual investment funds of VTB Capital currently operating.

What types are mixed funds divided into?

Mixed funds can be classic or aggressive. If the functioning of classic mutual funds is similar to that of equity mutual funds, the former are exposed to a lesser degree of risk, but are inferior in terms of profitability. The dilution of the content of the portfolio of shares of connections is the reason for this.

The main goal of these funds is to find a middle ground between risk, which should not be high at all, and profitability. Classic mixed funds satisfy, first of all, those who are satisfied with not so large profits and prefer not to expose themselves to the risk of losing shares.

Risk cannot be offset by aggressive blended mutual funds because it is not dilution applied by equity bonds. To maximize maximum results, the portfolio is under active management. During increasing periods of recession, the share of connections is typical, and here during periods of transition growth only to stocks is performed.

Even if the CEO has considerable experience and is a professional, accurately forecasting market fluctuations is a very difficult task for him. Therefore, cases when the period of recession overtakes mixed funds consisting only of shares, which causes significant distortions, are frequent. In the case of the classic choice, there is, so to speak, a safety net against connections.

However, aggressive blended mutual funds still have many fans. Along with the risk and danger of losing shares, they allow you to become rich within a fairly short period of time. These funds also rank among mutual funds that do not use a highly specialized strategy.

In Russia, funds such as “Team”, balanced by Gazprombank, have assets exceeding one billion rubles.

Tips for assembling an investment portfolio

It is important to understand one main thing - there simply cannot be universal recommendations on this issue. This is due to the uniqueness of each investor. Each person has his own financial capabilities, requirements and expectations.

For this reason, an investment policy should be created personally, for each person. However, when creating a balanced portfolio, it is worth answering 3 main questions:

• What kind of profitability do you want to receive?
• How much risk is an investor willing to take?
• What is the optimal investment period?

Based on your own decisions, you can create an investment portfolio.

For example, an investor has chosen a strategy aimed at preserving capital with minimal risks and low returns. In this case, you should focus your attention on a mutual fund with a conservative strategy and buy a share there.

If you are more interested in earning money and not just saving, then you can split your existing capital and, for example, invest 60% in a fund with a low degree of risk. The remaining 40% is divided between profitable and risky.

The VTB Capital website has a service that will help you choose the optimal portfolio. You can find it at this link. To select a package, you do not need to enter your details.

ETFs

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