Index mutual funds

If you read this article, it is possible to tell precisely that you know that such Mutual funds and as they work. Let's repeat that the mutual fund is the fund taking shares or bonds, supervised by a certain Management company, and money undertakes the account of shareholders, that is you, those people who bought shares mutual funds.

What is the index mutual fund, and than it differs from mutual funds of actions and bonds. In our stock market two indexes – MICEX and RTS. The index is a set of the most liquid actions of the Russian companies created in certain proportions. So, index mutual funds most precisely repeat this proportion. But all not always so smoothly and happen small deviations, it is well appreciable if to compare the schedule of index mutual funds, for example, mutual funds of MICEX and the index of MICEX. Thus, we found out that index mutual funds essentially facilitate life to the investor. But, if all of them are so similar, than they then differ? Perhaps, for the sake of the answer to this question you also opened this article.

Let's begin with that now in the market the large quantity of Management companies is presented and you should choose one of this variety. By what criteria to make selection? First, this place of the company in a rating and profitability of the mutual fund (Yes, in spite of the fact that all of them should give approximately the equal income, figures all the same differ). Secondly, it is very important to learn, what expenses are coming you: besides a discount and an extra charge, there is still UK compensation, to depositary and an other expenses. At present, your total expense can make from 1,6 % to 8 %. By these criteria also it is necessary to conduct the selection.

We hope that our article helped to understand to you difficult criteria and characteristics of index mutual funds. Remember that in index it is meaningful to invest generally in long-term prospect. Successes in work!

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