Mutual Funds
The mutual fund is a collective “open-end” investment scheme that invests in securities and other liquid financial instruments. The mutual fund is not a legal entity, but a collective investment scheme in financial instruments of funds raised through a public offering of units, based on the principle of risk allocation. Every mutual fund is organised and managed by a Management company which performs all the operations connected with the fund’s activity. The mutual fund issues/redeems units by means of which investors are able to control their property in the respective portion of the fund assets as well as having a redemption option.
At any Fibank office acting as an entity under Article 16 of Ordinance No 26 of the Financial Supervision Commission, which accepts orders for transactions in financial instruments, orders may be filed for subscription/redemption of units of three mutual funds, organised and managed by the Management Company FFBH Asset Management AD:
- "Fibank Garant" Mutual Fund (low risk)
- "Fibank Classic" Mutual Fund (balanced)
- "Fibank Avangard" Mutual Fund (high risk)
Investing in mutual funds is principally related to market risk and concentration risk.
The market risk for mutual funds is associated with a decrease in the market prices of the fund’s investments and the value of its units following changes in the economic and market environment.
The concentration risk for the collective investment schemes is associated mainly with having the financial instruments invested predominantly in one market (state, geographical region) or invested in financial instruments in a single industry.
bank (2265)+359 700 19 599
