Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What are the types of collective investment funds?

Investment Law Investments Financials Financial Management Finance Banking &amp Finance
user-image
Question added by Siham Amer , Financial Analyst , Noor Al Hikmah Group
Date Posted: 2018/11/28
Upvote (0) Views (5) Followers (2) Answers (2) Report Question
Write an Answer
Register now or log in to answer.
ايمن محمد عاطف محمد
by ايمن محمد عاطف محمد , Director of the control and regulation unit , ACOLID

Definition of Investment Funds:Investment Funds represent an investment vessel for pooling and saving individuals' savings in securities through an experienced portfolio manager. This is what individuals can not achieve. This is one of the modern reasons for managing money according to the needs of investors, Can not be achieved alone, which benefits the bank or the company that establishes the funds and the investment savers and the national economy as a whole, a means to finance the operations of the national economy by linking national savings to the capital markets to protect the exempt Merin is specifically designed to serve a certain class of investors, especially small savers, by finding a way to diversify their investments in a way that is available only with a large financial portfolio. Types of investment funds: There are different types of investment funds:1. Investment funds by trading and divided into two types:- Closed Investment Funds: These funds are established by the joint stock companies and called a closed description because they issue a fixed number of shares traded in the financial market as they have a specific goal and a specified period of time. At the end of that period the fund is liquidated and distributed to the participants. He sells his assets in the Fund in the stock market. Open Investment Funds:         Mutual funds are also called mutual funds, which are created by an investment company, bank or insurance company and issue a non-fixed number of shares traded on the stock market. The strategy of this type of fund issues new documents whenever an investor invests additional funds in this The Fund will issue documents with its value. These documents may be resold to the Investment Fund issued by the net asset value of the Fund upon sale. The documents of these funds shall be evaluated on a daily basis based on the net value of the Fund's assets. The Mutual Fund shall also give a certificate to its shareholder directly or through an intermediary in the stock market. This type of fund allows its subscribers to exit or enter it at any time. Based on the market value of the securities included in the Fund's assets, and the valuation of the Fund's assets facilitates the participation of new shareholders or the withdrawal of existing shareholders. 2. Investment funds according to the components and types are: - Ordinary equity funds: Comprising medium and long-term funds and achieving a long-term rate of return and capital growth in accordance with the Fund's equity portfolio. - Cash market funds. Funds that contain short term securities with a maturity period of one year such as treasury bills, certificates of deposit and bank bills. - Bond funds. Investment in these funds is only for the purpose of reducing the Fund's risk while achieving a fixed fixed return on the terms of the bonds invested in the Fund. These funds include:Local bond fundsInternational bond fundsBond funds with periodic returns Special bond funds. Balanced Funds. These funds include ordinary shares, bonds and preferred stocks. - Currency funds. Which are traded in foreign currencies in order to achieve price increases. - Commodity and cargo funds Which invest in the purchase of goods and goods and then resell them in order to achieve profits. - Gold and Precious Metals Boxes Which are investment funds interested in investing in the shares of gold companies and precious metals and gold markets and precious metals. - Indicator boxes These funds are made up of market indices such as the Dow Jones, the NASDAQ and other indices.   Specialized funds Funds are invested in a specific sector of the economy, such as chemicals, technology, banks and other sectors. Islamic Investment Funds  Invest in sectors that do not conflict with the idea of ​​Islamic investment by preparing a study for a specific project and financing the project through the public subscription and the contract between the Fund and the subscribers is the Mudaraba Shariah - Mutual funds The components of that fund include local and municipal bonds. 3 - Types of investment funds according to objectives: - Growth funds: These funds are designed to achieve long-term growth and significant future returns through improving the market value of securities comprising the Fund's portfolio and including ordinary shares.- Income funds: The management of these funds aims to maintain the assets of the Fund and achieve a reasonable periodic return on investment, including the portfolio of securities on bonds and suit the investors who rely on the return of their investments to cover their living expenses.- Income and Growth Funds: The management of these funds is in addition to maintaining the assets of the Fund and achieving periodic income to grow in the long term and the portfolio consists of ordinary shares and other securities with a fixed return.- Tax administration funds:Means those funds which are not distributions to investors, but is to reinvest the profits generated in return for the investor to obtain additional new documents equivalent to their value.- Dual purpose funds:Is a special type of closed-end fund that can meet the needs of two different investor categories

Ashraf Mohamed Seddek
by Ashraf Mohamed Seddek , Group Chief Accountant , ADDAR GROUP - Closed Joint-Stock Co.

A collective investment fund (CIF), also known as a collective investment trust, is operated by a bank or trust company and handles a group of pooled trust accounts. Collective investment funds group assets from individuals and organizations to develop a larger, diversified portfolio.

** Types of funds: A1 funds are grouped assets contributed for the purpose of investment or reinvestment, and A2 funds are grouped assets contributed by trusts exempt from federal income tax.

Best Regards 

Write Your Answer
More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.

Get Help