Investment fund as a profitable investment in the international stock exchange
The exchange-traded fund (ETF) is an investment fund almost identical to the structure and dynamics of a certain underlying asset – a stock exchange index, as a rule. Acquisition of a share in the investment fund (ETF share) entitles the shareholder to an interest in a certain portfolio of assets, not necessarily securities (assets can be represented by raw materials or foreign currencies).
Advantages of investment funds:
- Transparency. Potential investor has access to any information about investments of the fund, current and historical market value, and all costs related to investments into the fund.
- Liquidity. High liquidity of ETF shares in international stock exchanges. Minimal difference between purchase and sale prices (hundredths of a percent).
- Diversification. The investment fund portfolio may comprise various securities (bonds, shares, raw materials, etc.) in large numbers (some funds keep up to 3000 shares of different issuers) which materially reduces the risk of drastic change of the market value of the investment fund shares.
- Accessibility. The investment amount starts from USD 10,000.
- Cost saving. The brokerage fee for acquisition of the investment fund share is much lower than the cost of acquisition of individual securities included into the investment fund portfolio.
- Investment into an investment fund under professional management stands out of other investment options since it helps the investors diversify their risks with minimal investment volumes. Having purchased shares of different investment funds, the investors actually channel the money into hundreds of securities included by the funds in their portfolios: securities issued by different issuers (Gazprom, Coca-Cola, Apple, and others), operating in various industries (production, finance, etc.), economies and regions of the world (America, Russia, Europe, etc.).
- The investment fund (ETF) is one of the best financial products for investors aiming to diversify the portfolio of financial investments but not intending to channel the majority of their investments into the stock market. ETF was developed for investors who want to earn higher return on the invested equity with relatively low and transparent level of risk.
How to conclude an agreement
Shares in the investment funds are acquired in the framework of a trust management agreement
List of documents required for conclusion of an agreement:
- Customer questionnaire.
- Customer identification document.
- Customer’s representative identification document and the document confirming the authority of the Customer’s representatives for conclusion of the Master Agreement in case the Customer acts through a representative.
For conclusion of a trust management agreement, the Customer shall:
- Get to know the General Terms of the Master Trust Management Agreement.
- Sign the Master Trust Management Agreement.
- Open a trust account.
More detailed information about the investment funds services is available from your account manager or the Investment Banking block of BPS-Sberbank at the address: 6, Muliavin Blvd., Minsk, phones +375 (0) 17 – 359-90-84 / 359-93-20, +375 44 588-04-01.
You can also leave your message, and our experts will be delighted to appoint a meeting at any time convenient for you, and answer your questions.