Investments funds
Our funds support individual investors, i.e. ECP participants.
Investment funds constitute a form of collective investment, whose main purpose is to multiply the assets entrusted by participants. It takes place through investing funds in such securities as shares, bonds, treasury bills and other securities. They are created and managed by investment fund associations (towarzystwa funduszy inwestycyjnych – TFI). On the Polish capital market, we can choose open-end investment funds (fundusze inwestycyjne otwarte – FIO) and alternative ones, among which we can distinguish open specialist investment funds (specjalistyczne fundusze inwestycyjne otwarte – SFIO) and closed-end investment funds (fundusze inwestycyjne zamknięte – FIZ).
Why is it worth investing in these funds?
Compared with other forms of investment available on the capital market, investment funds are considered to be very advantageous to investors for several reasons.
Profitability, transparency and simplicity, security
First of all, high profitability is mentioned as one of key benefits of investing in investment funds. The next argument in favour of investing in funds is transparency and simplicity – investing in funds does not require specialist knowledge, as investment decision making is entrusted to professionals.
Of high significance is the security – investment funds and the companies managing them are subject to strict legal regulations which protect the participants’ interests. Moreover, the following public trust institutions ensure that assets allocated in the funds are safe: Polish Financial Supervision Authority, depository bank and transfer agent.
Most important advantages of investing in funds
Explore types of funds
Open-end investment funds
Open-ended investment funds are the most popular group of funds and virtually anyone can invest in them. Their key differentiator is that there are no restrictions on joining or cancelling participation.
A participant in this kind of fund can be an individual, a legal person, as well as an organizational unit that does not have legal personality. For contributions, the fund participant receives participation units, which can be resold at any time. Participation units cannot be traded, but they may be inherited. Open-end funds determine the market value of their assets at the end of each trading day.
In Poland, investment funds operate under the provisions of the act of 27 May 2004 on investment funds and management of alternative investment funds. In accordance with this act open-end investment funds may invest in:
- securities issued, guaranteed or underwritten by the State Treasury or the National Bank of Poland,
- securities and money market instruments that are subject to public offering, and the terms of the issue or initial public offering presuppose the submission of an application for admission to trading,
- deposits in domestic banks or credit institutions with a maturity of more than one year,
- money market instruments other than those specified in items 1 and 2, if they or their issuer are subject to regulations that are designed to protect investors and savings,
- securities and money market instruments other than those specified in items 1,2 and 4, provided that their total value does not exceed 10% of the fund's assets.
One of the forms of open-end investment funds are specialized open-ended investment unds (SFIO). They differ in that their offerings are aimed at a specific audience, such as institutions or participants in pension plans. These funds invest, among other things, the funds of participants in Employee Capital Plans.
Closed-end investment funds
Closed-end investment funds target a carefully defined group of investors.
Closed-End Investment Funds are funds that issue certificates.
Their issuance can be carried out through a public or non-public offer. In the case of a public offering, it is necessary to prepare and then have approved by the Financial Supervision Commission a prospectus or information memorandum and make it available to the public.
Importantly, investment certificates can be purchased only at certain times - during the issuance, and sold - at fixed redemption periods.
Valuations of investment certificates of closed-end funds are published regularly, but less frequently than for shares of open-end funds - most often the publication of valuations takes place once a month or once a quarter. Closed-end mutual funds are characterized by greater flexibility in the construction of their asset portfolio. They can invest in:
- securities,
- receivables - with the exception of receivables from third parties,
- shares in limited liability companies,
- currencies,
- derivatives, including non-standardized derivatives,
- property rights, the price of which depends directly or indirectly on things designated by species, certain types of energy, meters and limits on the volume of production or emissions of pollutants, admitted to trading on commodity exchanges,
- money market instruments - provided that they are tradable.