In English what we call collective investment schemes or investment trusts or mutual funds investment is one of the most popular institutions of financial intermediation in which investors also known as cross country skiers, purchase small or large units of capital to be managed by an asset management company which is responsible for the promotion, establishment and management of mutual funds. the objective of the course is to create value through a number of assets in the portfolio. Custodian banks also fall in the game, who keep the fund as physically titles held in cash and available liquidity so they play a supervisory role.
How much enters into a mutual funds? You need to figure these items:
Entry fee or subscription to be paid to the first payment. Usually the amount is inversely proportional to the size of the investment but it can also vary according to the type of fund chosen.
Management fee: The term indicates the expenses to be paid to the asset management company to manage the fund. It usually has to be paid from month to month, every three or six months.
In some cases there is a extracommission performance which is a kind of prize for the SGR for superior performance to a predetermined level.
The main financial newspapers publish every day how much is each share of the various existing funds, while on the website of the Stock Exchange one can follow the progress in real time, just as you do with the actions. There are many types of mutual funds. We will talk about it soon.