Types of mutual investment

To date, investing in mutual funds is one of the most promising options for increasing equity. Open and closed mutual funds can be used for this purpose. Each of these funds has its own characteristics, which should be taken into account before making mutual investments.
The most popular type of mutual funds are open mutual funds, characterized by a high level of liquidity. This is due to the fact that shareholders have the opportunity to purchase, redeem or exchange their share on any working day. Therefore, investors are able to get their money as quickly as possible. If necessary, shareholders can easily transfer the received funds to any other mutual fund.
Among other advantages of open mutual funds can be noted their availability. As a rule, the minimum contribution for joining such a mutual fund is from 5 thousand rubles. At the same time, shareholders can make additional investments in the amount of one thousand rubles. It can also be emphasized that the invested funds of OPIF are managed by experienced professionals who regularly monitor all stock quotes. Thus, shareholders of retail mutual funds save themselves from the need to constantly monitor the latest changes in the financial market. Finally, there is the differentiation of risks. Given that most management companies manage multibillion-dollar investment portfolios, the specialists of these organizations have the opportunity to allocate deposits to different classes and types of assets.
Closed mutual funds are a more complex organization, which is often created for a specific project. Such a mutual fund has certain terms within which the investment is carried out. A feature of ZPIFs is that shareholders do not have the opportunity to buy, exchange or repay their shares ahead of time. This opportunity is granted only after the end of the term of the Fund.
The main advantages of such a fund include the convenience and flexibility of investment. Investment shares of the depositor can be circulated not only on the stock exchange, but also on the over-the-counter market. The advantages include a high level of control over the activities of the management company. Moreover, control over the company that manages the assets of the organization is performed not only by shareholders, but also by the state and various regulatory bodies.