The Mutual Fund is considered to be an issuer of units in which the fund is divided. When you make an investment in a Mutual Fund, you subscribe (purchase) units from the fund. The Funds take account of all individual investments by registering the number of units owned by each investor. The more money you invest in the mutual fund, the more units you possess.
Investing in units of a Mutual Fund could be profitable when you subscribe the units at one price and latter you sell them at higher price (redemption price). Of course, when the redemption price is lower than subscription price – you are exposed to a lost.
Another way for making profit is dividend per unit paid out at the end of financial year.
The NAV of the Mutual Fund is calculated by subtracting the value of all fund’s liabilities from the value of all mutual fund’s assets.
The NAV of one unit is calculated when the NAV of the Mutual Fund is divided by number of issued units.
Units of Mutual Funds can be subscribed by all Bulgarian and foreign individual and legal persons.
The minimum amount which you can invest in units of the 4 Bulgarian Mutual Funds of Raiffeisen Asset Management is BGN 30.
For Raiffeisen (Bulgaria) Protected EUR Fund, this amount is equal to EUR 1 000.
The right of the fund for redemption of units arises at the time of reaching the minimum amount, required by the law, of the net value of assets of the fund, namely BGN 500 000 (five thousand). Such minimum amount must be reached until one year from the date of grant of permission for organization and management of the Mutual Fund. On the business day following the day on which the minimum amount has been reached the Management Company shall publish information about this in the central daily in which it usually publishes the issue value of its units and the redemption of units shall commence on that same day. No redemption of units shall be permitted until reaching the minimum amount of the net value of the assets of the Mutual Fund.
Orders for purchase and redemption of units which were submitted in the intermediate period, i.e. following the final announcement of the issue value, respectively the redemption price, and prior to the initial date of the term of temporary suspension of the redemption, shall not be executed.
Subscription and possession of units in Mutual Fund is connected with some costs. Firstly, the investor pays certain amount when subscribes unit – that are the subscription costs. Furthermore, there are costs paid by the fund itself – management fee on behalf of Asset Management Company, broker fees and so on. These costs although paid by the fund, will reduce investor's profit.
All costs accompanying mutual fund's activity could not exceed 5% of the average yearly NAV.
By definition Mutual Fund doesn't have a term and everyone who possesses units in the fund can sell them (redeem) to Asset Management Company or on BSE.
The investment horizon is a recommended period for an investment in a fund aiming at achieving an optimal return in accordance to the fund’s investment strategy. The funds with a different risk profile have different investment horizons, which vary from few months to few years. By rule the higher the risk in a fund, the longer is the investment horizon.
Every business day from 8:30 AM to 3:00 PM, by submission of order for purchase/redemption of units and deposit slip or payment order, documenting the deposited amount, in the case of subscription of units, and of depository slip in the case of sale of units. The order can be submitted personally or by attorney, inclusive also by licensed investment broker.
If the order is presented by attorney, the latter must submit also notarized Power of Attorney, entitling him/her to carry out security disposal transactions, and Declaration by Attorney affirming that he/she does not carry out security transactions by occupation.
The deposit slip or the payment order shall be documents which verify the amounts paid for subscribed units and shall be given to investors upon payment, correspondingly upon remittance of the amounts for the subscribed units.
The prices of units of the Mutual Fund are published every business day in ‘Pari’ Daily, in the branches of Raiffeisenbank (Bulgaria) EAD as well as on the web-page of the Mutual Fund and in the bulletin of the ‘Bulgarian Stock Exchange – Sofia’ AD.
Information for the prices can be received also on telephone 0700 10 000 (at the price of one city call).