MUTUAL FUNDS FINDING THE RIGHT PLACE FOR YOUR MONEY

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MUTUAL FUNDSFINDING THE RIGHT PLACE FOR YOUR
MONEY Lyubomir Stefanovlyubomir.stefanov_at_gmai
l.comSofia University St. Kliment Ohridski
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WHAT IS A MUTUAL FUND? mutual funds are an
excellent alternative to traditional savings in
practice, they pool money from various individual
investors which is later managed by qualified
professionals your money is used for purchasing
of stocks and bonds of various companies this
way you get higher return without any additional
efforts
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NINE ADVANTAGESof mutual funds RISK
DIVERSIFICATIONby putting your money in a mutual
fund, you purchase stocks and bonds of a large
pool of companies PROFESSIONAL
MANAGEMENTfinancial professionals with long
years of experience are working hard to get the
highest profit possible HIGH LUQIUDITYyour money
is available to you at any given moment
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NINE ADVANTAGESof mutual funds ECONOMIES OF
SCALEcosts of each transaction with fund assets
are minimized, as they are allocated among all
investors TAX RELIEFSno taxes need to be paid on
income received from investments in mutual
funds EQUAL TREATMENTno matter what amount you
invest in a mutual fund, you will get the special
care and attention that big investors get
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NINE ADVANTAGESof mutual funds HIGH
TRANSPARENCYmutual funds are forced by law to
provide detailed reports of their
activity AFFORDABILITYmutual funds provide you
with the opportunity to own stocks of a large
number of companies even with a small amount of
money EASE OF USEinvest your money and leave the
hard work of managing to highly qualified
professionals
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HOW DOES THE FUND MAKE ME MONEY?mutual funds can
generate income in three ways
by paying out dividends the fund can earn you
money in the form of paid dividends, which are
allocated to investors depending on their
shares when prices of owned stocks/bonds
rise when the net asset value increases if
the value of the portfolio of securities
increases, this means that the value of your
investment also increases
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WHERE IS THE CATCH?security of my money

• higher returns, but with higher risk however,
  this risk is strictly managed by highly qualified
  and experienced professionals
• security is guaranteed by control from
• The Financial Supervision Commission
• Bank Depository
• Independent Auditor
• proof of the reliability of mutual funds are
  nearly 170 million people around the world, who
  have invested over 15 trillion euro

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TYPES OF MUTUAL FUNDSor which one is most
appropriate for you
depending on assets into which pooled money is
invested and the risk profile, mutual funds may
be classified into three groups
highly profitable
conservative
balanced
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TYPES OF MUTUAL FUNDSor which one is most
appropriate for you
conservative mutual funds
minimal risk they invest in securities with
fixed returns return usually varies between 5
and 15 assets structure generally includes
bonds 70, deposits and cash 15, and stocks 15
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TYPES OF MUTUAL FUNDSor which one is most
appropriate for you
balanced mutual funds
mixed portfolio of investments with low to medium
degree of risk intended for investors seeking
long-term gains and possibility for
growth return typically starts from
15-20 assets structure is usually close to the
following bonds 40, deposits and cash 15,
stocks 45
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TYPES OF MUTUAL FUNDSor which one is most
appropriate for you
highly profitable mutual funds
highest return and highest risk aggressive
investment policy intended for people prone to
take risks return may exceed 100 these funds
usually have the following assets structure
bonds 15, deposits and cash 15, and stocks 70
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multiply your hard earned moneyin the best way
possible
YOUR MONEY MULTIPLE POSSIBILITIES A MODERN
INVESTMENTthat will bring you more profit