TYPES OF INVESTMENT COMPANIES – An investment firm is a financial intermediary that gathers funds from investors and infuse these funds on a wide array of securities or other assets.
The set of funds invested in the fixed portfolio (not changed) during the age of the mutual fund.
To form an investment company (units investment trusts), the sponsor is typically a brokerage firm bought a portfolio of securities that is stored in the trust after sold society called trust certificates can be redeemed management unit investment trusts are not too active because once the portfolio was formed,
the composition will not be changed again so that the trust is often called unmanaged.
Unit Investment Trust
Unit Investment Trusts Unit investment trusts are the set of funds invested in the fixed portfolio (not changed) during the age of mutual funds.
To form a unit investment trust, the sponsor is typically a brokerage firm, bought a Porto folio security deposited in the trust.
Next up for sale to the public, called the trust certificate that can be redeemed.
Management of Unit Investment Trusts are not very active portfolio because after established, the composition will not change again, so the trust is often called “not maintained”, the trust tend to invest in assets that are relatively uniform,
example: a fund may be invested in government bonds and more on corporate bonds.
Closed-End Investment Company
Is the only investment company sold its shares at current quote Prime (IPO) only and not further offers more additional shares.
Open-End Investment Companies (mutual funds)
This investment is still selling new shares to investors after the sale of its shares.
Investment companies (mutual funds) (PI): the financial intermediary (FI) that collect financial resources of individuals and companies,
and financial resources invested in a portfolio of diversified assets.
The effect is securities, namely the letter of acknowledgement of debt, commercial paper, shares, bonds, debt proof mark, a collective investment contract investment Unit, a futures contract over the effects, and any derivatives of the effect.
The prospectus is any written information in connection with the first public offering with the aim of enabling others to buy securities.
Any securities (shares) issued investment firms represent a proportion of ownership in a portfolio of securities that is managed for the benefit of (the name of) the shareholders of the investment company.
The company’s Investments are intended to give the opportunity for small investors to invest in securities-securities finance and diversify risk.
Investment firms can be classified from different perspectives:
In terms of the nature of the issuance of the shares,
mutual funds open (open-end fund): a mutual fund is always ready to sell new shares to the public and to buy back shares that have outstood at any time at a price corresponding to the proportion of the value of its portfolio,
calculated on a per market closing daily.
closed-Funds (closed-end fund): mutual fund that sells shares as well as other companies,
but they usually do not buy back stock they will be.
Guardianship unit (unit trust): similar to a mutual fund enclosed in terms of number of unit certificates were issued, namely fixed,
but there is a difference with mutual funds that specialize in bonds, which are:
Bonds in the unit trust is not actively traded.
Unit trusts have a date of dissolution.
Unit trust investors know that its portfolio consists of bonds, certain of a set and not worry that the guardian will change the portfolio
In terms of its cost,
load fund: the mutual funds in this transaction, the publishers charge sales commissions to its investors.
In General, mutual funds that charge sales commissions on mutual funds are open.
mutual funds without sales commissions (no-load fund): the funds in this transaction does not charge a sales Commission to the investors.
In the face of competition, many mutual funds mutual funds are open without sales commissions, but at the moment there is redemption, this fund imposes redemption fee.
In terms of the purpose of its investments.
- mutual funds stock mutual funds investment objectives are a minimum of 80% in stock instruments.
- fixed-income mutual funds: mutual funds are investment goals for a minimum of 80% on the debt instrument.
- mixed mutual fund: Fund investment objective that combines stocks and debt instruments,
- the mutual fund money market mutual funds whose investment objective: on debt instruments with a maturity of less than one year.
Each of these has a characteristic type of mutual fund returns and specific risk.
Mutual funds with high expected returns, then the risks will also be high.
If the review of the risk-return characteristics of mutual funds was in between the two extreme points of investment instruments, namely between the deposits and shares.
Of the trust tends to invest on Aset-Aset relative uniform.
Example: A Fund may be invested in government bonds and more on corporate bonds.
STRUCTURE AND THE LOAD OF COMPANY
The company’s Investment income source:
The returns generated from investments in a portfolio that are managed
Sales Commissions (specifically for load fund).
The returns generated from investments in a portfolio can be formed: 1. Interest, Dividend, 2. & 3. Capital gains.
This depends on the type of returns in other classifications.
The company’s strategic investment
The Defense contends. Try for a product that becomes “the new flagship” and does not concentrate on the improvement of the success of existing products.
Take positive and proactive steps to colonised key managers expert professional techniques which are always included in the formation of the success of the company.
The planning effort is a blueprint written (blueprint) containing about mission efforts, business proposal, business operations, business strategy, financial details, market opportunities may be obtained, and the ability and skills to manage them.
The company will continue to take strategic measures, among others: the focus on media and telecommunications and financial services and developing investment in business and industry that owned high growth rates.
The main cost of investment companies:
- Operational costs (salaries of Board of Directors, etc.),
- Fee for financial advisors,
- Cost of sales and marketing,
- Fee for the service monitoring and accounting,
- investment transaction costs, and
- The cost of the tax, as a business entity.
The Cost Of The Investment
The cost of the acquisition of an investment includes the cost of acquisition of another in addition to the purchase price, such as brokerage commissions, bank services, and charges by the stock exchange.
If an investment or part is obtained by the issuance of shares or other securities,
then his acquisition cost is the reasonable value of securities issued and not the nominal value or value.
If one or more investments are obtained by exchange with other assets,
the cost of acquisition of the investment is determined by reference to the fair value of the assets that are submitted or can also use fair value of assets acquired if deemed more reliable data/evidence available.
Accounts receivable interest, royalties, dividends and rent in connection with an investment, in General, is considered income (return) investments.
But in certain circumstances, such inflows can constitute a recovery of costs and do not constitute earnings.
For example, if the interest is paid was on admit prior to the purchase of investment that yields and therefore is included in the cost of the acquisition paid for such investment,
the next admission of interest is allocated between the period before and after the purchase; the part before the purchase is deducted from the cost of acquisition.
If dividends declared from profit before it was acquired dividend, then the pre-acquisition cost deducted from the acquisition.
The difference between the acquisition cost and the value of the redemption (redemption value) an investment in debt securities (discount or premium on the purchase)
are usually amortized by investors during the period of purchase to maturity so that results constant (constant yield) obtained from the investment.
Discount or premium amortized the credited or charged to income interest,
and so is the addition or subtraction of values listed securities (carrying value).
The resulting recorded value, then regarded as the price of the acquisition.
THE USE OF THE SERVICES OF INVESTMENT FIRMS
Financial advisory services (sometimes also referred to as financial advisor) is still synonymous with insurance or banking staff officer.
They will be happy to give you feedback on how you should choose a wide selection of financial management and investment they have.
It’s just that because they represent his company,
chances are you will be directed to choose investment options like insurance, savings, deposit insurance, mutual funds,
and others that are owned/offered by the company or the bank.
Using the services of investment management company doesn’t mean you have to have huge amounts of money to be invested.
by purchasing the Fund products worth $5000 for example, you have used the services of the company management investments,
because your money is managed by investment management company mutual fund Publisher.
If you want to use the services of investment management company, choose a company:
Have been solid and has a great name. One of them is the usual charge indicators will advertise on social media.
Evaluation of the Fund Fact Sheet. How much does an average return on investment in these companies, for example in the last 5 years.
It can describe the possibility of touring in your investment in the company.
Make sure the company has official permission and listed on the stock exchange
Also, make sure the company has never had a problem in the capital market. You can search for information through Google, among others.
Should the company have a website in order to monitor information at any time, including download fund fact sheet