FAQ

1. What are the advantages of participation in investment fund for me?
Main advantage is professional management of investments fund with the staff experienced at equity and financial markets’ risk and opportunities. Their activity is under severe state control.
Investment funds don’t invest only one issuer’s shares, they create “portfolio” buying different equities of a number of issues making the whole portfolio more secure in general.
Investment funds are one of the most transparent investment instruments because of regular reports to their participants and shareholders.

2. Why the investments ought to be long-term?
Investment fund is a long-term investment instrument by nature. The mechanism of its activity – diversification, background, reliability leads to low rate of operations (comparing to self-reliant investment) that means higher commissions to investor in case of a great number of buy-sell operations. Also investor may loose a time waiting for enroll of equities. That’s why investment fund is not an adequate instrument for short-terms speculations. Long-term investments protect the investor from short-term variations of the equities he has bought. Lont-term rising trend always more reliable and stronger than short-term significant fluctuations.
Main target of investment funds’ investor – earning money considering more or less prolonged prospective (more than a year) but not speculations. Independent work of investor on equities market demand professional knowledge and special psychological character.

3. Is there a kind of guaranty that the fund will be profitable?
Assets management company don’t guaranty that because the fund itself can’t be responsible for third parties (state, companies).
Assets management company is obliged to make professional reasonable decisions, inform investors about such decisions and results, obey to current legislation.  Assets management company and investor both are interested in maximization of the profit as far as profit of the company corresponds with investor’s profit. That’s the reason why assets management company is vitally interested in effective work with investors’ money.
 
4. How many funds the assets management company may manage?
It’s not limited by the legislation.
 
5. What is the reason to mutual (unit) investment funds?
Investing with such funds the investor became owner of investments’ shares which cost may change. Appropriate management of assets management company and market situation makes shares’ cost to grow. The profit comes from sale of the shares that became more expensive.

6. Does investment fund property belong to assets management company?
No. Funds assets belong to the owners of shares.

7. What are the advantages of investments funds?
Main advantage is diversification. Irregardless to what sum the investor spent he can get all advantages of joint investment and professional assets’ management.  Any sum invested through the fund will be diversified which means invested in many equities or sorts of assets for significant decreasing the risk.

8. What is the difference between banks and investment funds?
Fund’s shareholder gets the profit as the bank client gets the interest. Any can sell the funds share at any time as bank client get money back after the expiration of the deposit term (if not he loose the interest).

9.What is open fund?
Open funds – funds whose shares may be sold at any moment the investor want. Share cost is evaluated every day. This type of fund may be very comfortable for the investor.  

10. What is close fund?
Open funds – funds whose shares may be sold at the moment when fund finishes its activity or at the moment or reorganization.

11. What is interval fund?
Interval fund’s shares may be paid off during preliminary agreed in prospectus periods only but not less than once in a year.

12. May investment fund money be invested in foreign companies’ equities?
Yes, if stated in fund’s investment declaration.
 
13. May investment fund assets include cash?
Yes, including foreign currency.

14. What is minimum and maximum term of investment?
It depends on fund’s type that you invest. Certificates (shares) of open funds you can buy and sell at any moment; interval funds – during certain period of time; closed funds – after they finish their activity or at the stock exchange.

15. May I withdraw the money if my personal needs demand it? Are there any penalties?
Certificates (shares) of open fund may be sold at any moment buy you or by your agent; usually you can sell shares of interval fund during agreed periods. You can’t disconnect from closed fund before it end up its activity but you can sell shares at the stock exchange. No penalties.

16. What profit tax should I pay?
Natural persons – owners of investment fund shares pays 15% of the difference between buy and sell price. Dividend profit tax - 5%.  

17. How to inherit shares of investment fund?
Like any other property: by turn or by the will.  

18. When I can get my money after sale of certificates (shares) of the assets management company?
In 7 days as stipulated in current Ukrainian legislation.

19. May I decide what equities to buy?
There’s no influence of the investor to the decisions of assets management company stipulated.  

20. What are the rules and laws for investment companies’ activity? Who control them?
Basic laws are “About state regulation of equities market in Ukraine”, “About mutual investments institutions (share and corporate funds)”, “About equities and equities’ market”. Investment company controlled by: State Tax Administration, State Commission of equities and equities market, custodian and auditor.