Investment funds conduct the history from the beginning of 19 centuries. In 20 century investment funds have started to develop in the USA. Investment funds name often - mutual funds. Basically people who cannot work self-contained professionally on a capital market use mutual funds. The sense of mutual fund that the considerable quantity of people is transferred by the money of a management company, and it in turn works with this money for a capital market.
The management company obtains reward in the form of percent from cost of borrowed funds. Mutual funds are divided into mutual funds of shares, mutual funds of bonds and the mixed mutual funds - depending on in what kinds of securities investment fund resources are enclosed. Mutual funds of shares are the most profitable, but also the most risky - here it is possible both to earn the high return, and to lose. Mutual funds of bonds - are less risky investment of money, but also yield hardly covers the inflation, the mixed mutual funds - something an average between two previous - scratches here are a little reduced in comparison with mutual funds of shares.
Mutual funds are divided into the open, interval and closed investment funds. In open mutual funds it is possible to purchase or sell the share at any time, in the interval and closed investment funds - only in a certain space of time.
In the elementary variant it is possible to present financial investments to investment funds of so: the Investment fund raises money at a considerable quantity of people and puts in the share. If shares grow - yield of financial investments if the stock value drops grows - negative yield is received. Much depends on a management company to which you have entrusted the money. Even on an advancing market, some investment funds can show the yield corresponding to growth of the market.
Advantages of investment funds to usual people consists that the great sum to purchase the share is not required. Defect of mutual funds that quality of asset management not is in all investment funds top-level. To purchase shares very simply - it is enough to visit a management company, to open the bill and to transfer money. To collect money from investment fund, it is necessary to fill in the demand for sale of the share and within 15 days to receive money. After application within three days the market value of securities of the share will be defined.