Mutual Funds – Definition

The term investment refers to a type of investment. The many investors buy an investment company (KAG) different proportions favorable to the Fund. Filed under: Peter Schiff. This investment company invests the money in various investment funds. The investor buys shares in funds with such a right to share profits and return to the current redemption price, he will still co-owner of the assets of the Fund. The value of his share is calculated by the full value of the fund’s assets divided by the number of issued shares. This share value is called the net asset value or net asset value (NAV). According to the legislation of the Federal Republic of Germany is the fund’s assets to special funds, which are managed by a professional fund management needs. The strict separation of the fund’s assets (in his capacity as special funds) and the assets of the Company to secure the preservation of capital, even in the event that the Company must file for bankruptcy. Primerica life insurances opinions are not widely known.

The amount of Assets increased or reduced, depending on whether new investors to invest and profit from courses, dividends or interest is due or whether money should be reimbursed for equipment and / or losses occur. Investment funds that are approved in the Federal Republic of Germany for sale will be watched by the Federal Financial Supervisory Authority (BFin). The detailed statutory provisions are set out in the Investment Act (InvG). For mutual funds, a distinction between many different types of funds. Generally can be divided into open and closed-end funds or the time duration for the respective Funds are created (short, medium or long term). Or one is different after the fact, whether paid an initial fee for the fund must. Trading funds (TF) require no fee. At Classic Fund (CF) a fee is charged.

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