Open-end investment funds (Mutual funds - FIO)
Frequently Asked Questions
The means in funds are secured, because of:
- Both the investment fund company and the depositary bank, as stipulated by the act, are obliged to act in a proper way in order to secure fund participant’s interest (the bank keeps fund assets, controls accounts and legality of transactions)
- Fund assets are kept on depositary’s bank accounts,
However investment in funds, as every other investment, is subject to an investment risk.
The fees which accompany fund management are:
- fixed fee for the management which is independent from the result and success fee which is dependent on the result.
- MM Prime Investment Fund Company is mainly focused on success fee, which means that MM Prime prioritizes achieving the best results.
Investment Fund Company is a public limited company whose only business
activity is creating and managing of investment funds, including financial
intermediation in selling and acquiring of participation units as well as
representing funds in the presence of the third party.
In order to operate, an investment fund company must be granted a licence by the Financial Supervision Authority Once licence is granted, an investment fund company is subject to constant supervision of the Financial Supervision Authority.
An investment fund is a legal entity whose only activity is an allocation of
financial means collected by public (or, as stipulated by the act also
non-public) offering of participation units or investment certificates
acquisition as stipulated by the act securities, money market instruments
and other property rights. (Art. 3 pt. 1 the Act on Investment Funds)
The rules of organization and activity of an investment fund as well as its investment policy are stipulated by statue of investment fund and by the Act on Investment Funds. An investment fund is under supervision of Financial Supervision Authority.