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Posts Tagged ‘Funds’

A manager of a mutual fund is a corporation, whose purpose is the representation and administration of collective investment institutions (IIC), with powers of control over these assets without owning them.

Features include:

Establish a fund along with the depositary to develop the appropriate regulations.
Exercise the rights attaching to the securities that the fund has a portfolio of exclusive benefit of members.
Determine the value of the shares.
Manage the assets of the fund object.
The managers are required to periodically submit to the CNMV comprehensive information that tells the history of funds and the degree of compliance with the legal requirements, among others are: the investment ratios of assets, equity, liquidity, positions the group manager, list of buying and selling, etc..

In practice, the fund acts as a “sack.” To the extent that a participant elects to purchase shares, the cash from the bag comes in increasing the wealth and the manager invests in securities. When the investor sells shares, the fund reduces its assets. All the purchase, sale and transfer of shares must inevitably pass through the manager, not being able to operate without this average.

Law 35/2003 on November 4 Collective Investment Institutions and unfolding regulations set the rules governing investment funds with mutual funds, as well as their managers and custodians. The purpose of the Funds and Mutual Funds is established with the purpose of investing in securities or real estate, as appropriate.

A mutual fund is an asset without legal personality, which is made up of contributions from a number of investors or participants. The fund is managed by a management company Collective Investment Institutions (SGIIC) and their property rights are represented by a certificate of participation. The contributions of all investors in mutual funds are invested in financial assets (bills, bonds, debentures, stocks, derivatives, etc.) Or non-financial assets (philately, art, buildings, etc …).

While mutual funds are constituted as Corporations shareholders being owners of the company, the Investment Funds are defined as assets that belong to a plurality of investors called stakeholders.

The assets of an investment fund is divided into a number of units of the same characteristics that have the character of negotiable, but have no value. The number of entries is unlimited and each value is calculated by dividing total equity value of the number of shares outstanding, this value is going to be called net asset value.

Investing means buying something that you hope it is worth. So you invest your money in order to gain profit out of it later. There are several ways. Any investment you choose will depend, for example, the goal you have and the risk that you want to run. Known investment are:

Shares: If you invest in call loan, buy a portion of a company. You are a shareholder of that company
Mutual funds: you buy a stake. The investment invests your money with the money of other investors. For example in different companies or other investment.
Investment objects: you invest in an object, such as hardwood or wine.
Bonds: If you buy a bond, you lend money to a company, the Dutch government or a foreign state. In return, you get the borrowed money with interest.
Options: options to buy the right (or obligation) to an underlying asset (eg shares) to buy or sell a specified price.
Structured products: these are often combinations of investment. Examples of structured products leverage products and guaranteed products.