What is JII

Joint investment institutions (JII) - a form of collective investment funds in which the participants are combined and the management company are invested in various assets (real estate, securities, etc.) for income investors. Joint investment institutions contain corporate and mutual funds.

Corporate investment fund - is JII, which is created in the form of an open joint stock company and work exclusively from investment.

Mutual Investment Fund - are assets that belong to the investors on the right of partial ownership are managed asset management company and accounted for separately from the latest results of its economic activity.

JII belongs to the closed type, if he (or his management company assets) does not assume any liability for redemption of securities issued by this JII (or company management of its assets) until its termination.

JII closed type can only be urgent.

JII can be diversified and non-diversified species.

JII considered diversified if it simultaneously meets the following requirements:

the number of securities of the same issuer in the JII assets does not exceed 10 percent of the total amount of shares of the issue; the total value of the securities that make up the assets of the JII in an amount greater than 5 percent of their total emissions at the time of purchase does not exceed 40 percent of the net asset value of JII

at least 80 percent of the total assets of JII make cash savings certificates, bonds, businesses and local bonds, government securities, and securities that are admitted to trading on the stock exchange.

JII activities diversified number of legislative restrictions.

JII, which do not have all the attributes of a diversified ІSІ are undiversified.

Non-diversified closed-end IIS, which performs exclusively private (closed) accommodation JII securities among legal entities and individuals, is a venture capital fund.

A natural person may be a member of a venture fund only if, to purchase securities of the fund in an amount not less than the minimum wage in 1500.

Investment funds - one of the most common and well-known modes of collective investment funds in the world today, when many investors pooling allows you to expand the range of investment opportunities and implement more efficient and professional management of these funds. People around the world invest their money in investment funds in order to increase their savings. In particular, about 50% of American households own shares in investment funds. Investing in mutual funds for more than half a century demonstrates its advantages over other possible means of long-term investments.

Investment funds have been created as a tool for investment for those who are willing to more profitably than bank deposits, deposit money, but can not adequately qualified or willing to invest yourself. Thus, the job market research, conducting technical analysis of companies and other things that should private investor take the foundation specialists. They will take your money and will try to do everything possible to multiply the money constantly. You can do is watch how successful these professionals do their job, and always be ready to take action if the result is not satisfactory. This basic principle of investing in mutual funds worldwide, and Ukrainian funds are no exception.

For the implementation of joint investment funds released investment certificates that are offered to accommodate participants (legal entities and individuals). Purchasing securities (investment certificates) fund, the investor becomes a party to the fund and receives its share in assets. Income from investments is formed due to the rising cost of the fund's objects, and hence the cost of the investment fund certificate.

All activities under the management of investment funds take on so-called asset management companies. That they are those to which investors entrust their money and who makes the contract.

Asset Management Company (AMC) provides professional asset management joint investment institutions (CII) on the basis of licenses issued by the State Commission on Securities and Stock Market.

The asset management company is a legal entity that establishes a fund to attract investors' funds, puts them into a highly profitable assets and manages the assets of the fund.

Asset Management Company performs the following functions:

creation of a joint investment institution;
attraction of investors by issuing and placement of securities (shares, investment certificates);
liability management, which have been listed by investors to the fund;
Implementation of market analysis of securities, real estate and other financial markets and subsequent investment in them according to the fund's investment declaration;
discovery of new targets for investment in order to increase the yield of the fund;
regular revaluation of assets and asking the unit value, shares or investment certificate;
current activity of the fund, reporting to government agencies that monitor the operation of AMC, contract of purchase and sale of shares, stocks and more

Management company fully carries out fund management activities since its creation until its liquidation or reorganization.

The main advantages of JII

High yield. Investment funds provide you with the opportunity to obtain a higher yield compared to that given by the traditional methods of investing, such as a deposit.
Professional management. Your funds are managed by experienced professionals who, based on their knowledge, experience and thorough market analysis decisions on the most profitable investments of investors, thereby reducing the risk and increase the size of your income.
Availability of any financial instruments. Combining investments many individual investors, investment funds accumulate large sums of money, which gives investors the opportunity to not only invest in large-scale investment projects, but also to take advantage of previously available only to a limited number of large investors. In addition, large amounts of assets held by the fund, can significantly reduce the costs associated with buying, selling and servicing assets.
Broad diversification. The Fund invests in various assets in different sectors of the economy, thereby dispersing the assets that can significantly reduce investment risks.

Related Links:
Law of Ukraine "On securities and stock market" from 23.02.2006, № 3480-IV, the Verkhovna Rada
Law of Ukraine "On Joint Investment Institutions (Unit and Corporate Investment Funds)" from 15.03.2001, № 2299-III, the Verkhovna Rada