UIT - what is it?
UIT (unit investment fund) - a combined cash investors, sent to the managing company. PIF is not a legal entity but merely a set of assets. Assets of mutual funds may be securities (stocks, bonds, mortgage securities, shares of other funds, etc.), real estate, etc.From mutual funds based on the securities they are three types: equity, bond, mixed (consisting of the first two in different proportions).
Everyone bought the part of the mutual fund (stock), becomes the owner of the same set of assets that the other participants. A profit is calculated mathematically, simply by dividing the total investment fund by the number of shares (mutual fund units). The income shareholders receive when they sell their shares at a price exceeding the price of their purchase.
From a legal point of view of their fund, by itself, is a security and can be sold, donated, pledged, transferred by inheritance, etc.
Obligation to redeem shares, rests solely with the management company of the fund. If a mutual fund - open, then redemption is carried out at any time. If a mutual fund - the interval, then the redemption of shares is carried out only at certain intervals, for example, during the first two weeks at the beginning of each semester. At a closed type of mutual funds, which are created for specific investment projects, such as the construction of the building. Shares of this fund can not be resold even before the dissolution of the mutual fund, ie to complete the project. In any case, even shares closed fund (not to mention others), you can buy and sell on the secondary market.
By combining many small sums of investors in Pytheas, the management company has an opportunity to diversify an investment portfolio, ie mutual fund to invest in different securities.This is the weakest part, the main disadvantage, in favor of the same asset management, because in the opinion of investors Pytheas no one takes into account, ie bought the stock and sit ... and wait whether this mutual fund returns??
Everyone bought the part of the mutual fund (stock), becomes the owner of the same set of assets that the other participants. A profit is calculated mathematically, simply by dividing the total investment fund by the number of shares (mutual fund units). The income shareholders receive when they sell their shares at a price exceeding the price of their purchase.
From a legal point of view of their fund, by itself, is a security and can be sold, donated, pledged, transferred by inheritance, etc.
Obligation to redeem shares, rests solely with the management company of the fund. If a mutual fund - open, then redemption is carried out at any time. If a mutual fund - the interval, then the redemption of shares is carried out only at certain intervals, for example, during the first two weeks at the beginning of each semester. At a closed type of mutual funds, which are created for specific investment projects, such as the construction of the building. Shares of this fund can not be resold even before the dissolution of the mutual fund, ie to complete the project. In any case, even shares closed fund (not to mention others), you can buy and sell on the secondary market.
By combining many small sums of investors in Pytheas, the management company has an opportunity to diversify an investment portfolio, ie mutual fund to invest in different securities.This is the weakest part, the main disadvantage, in favor of the same asset management, because in the opinion of investors Pytheas no one takes into account, ie bought the stock and sit ... and wait whether this mutual fund returns??
