The Investment Cycle

Investment company pools the money of many investors to acquire assets such as stocks, bonds and real estate. Each investor is the owner of the assets of the Fund (e,g child trust fund), and the subject receives a certificate as a whole. By investing in different assets is to reduce the risks to investors from losses, because losses will be offset by capital gains or interest.

Participation in mutual funds already provides benefits to the underdevelopment of financial markets. A distinction between open and closed funds.

Closed Funds are offered only to institutional investors. These notices are issued for a specified period, the shares, until you reach the required level of investment. Subsequently, the Fund is a closed and adjust the output action. Return of shares on the Stock Exchange. Mutual funds are also open to individuals and give a short new shares. Compensation may be filed or through exchanges. Mutual funds are subject to the Law on Investment. The plan savings, investments, regularly purchased shares. Here, the investor enjoys the special influence costs through, for example, he buys shares at a low average. In the framework of state support for the conservation plans for capital investments.

In addition, the accumulation of capital, with 18% bonus on the savings of employees will be encouraged. It should be noted that the annual non-taxable income for singles. It should be noted that the annual non-taxable income for singles. For investment savings plan investments in accordance with the seven year retention period. .