12 january 2017, 02:11
How to increase your income
The first investment Fund in the world was founded in August 1822 in Belgium, then in 1849 in Switzerland and in 1952, in France. As a mass phenomenon they began to appear in the UK and the USA. Then, the trusts focused on large customers and small investors had to use the services of financial brokers. Because of the growing number of small investors there was a need of creation of the Institute of counselling. Then in 1899 in the United States formed the first investment and consulting company by 1910 such companies was already ten.
The appearance of the first mutual Fund in the United States refers to 1924, however, in all countries, including U.S. investment funds steadily begin to develop only after the Second world war is gradually competing with the big banks and other financial institutions. Currently, more than half of American households are investors of an investment Fund.
During the last 125 years in different countries with different legal and financial systems have developed different structures for collective investments. Now investment funds began to be structured into the legal structure of the trust contract in corporate operating structure open closed for the purposes and objects of investment.
1. Corporate funds
The most common in the world practice, the type of Fund corporate Fund which is organized in the likeness of joint-stock companies. It invests on behalf of its shareholders in stocks and bonds of other companies. The income received from such investments are distributed among the shareholders of the Fund in the form of dividends and the value of their shares rises or falls in accordance with changes in the value of investments of the Fund. Owners of corporate stock are shareholders and run it on behalf of the Directors of the company which may delegate part of its functions such as managing assets to other organizations.
First investment funds appeared in the 1860s the Most popular types of corporate funds is a mutual funds mutual funds in the United States, open-end investment company open-ended investment companies in the UK and investment companies with variable capital Societes dInvesissments a Capital Variable in France. To enterprise funds also include joint investment funds in Russia.
2. Trust funds
The basis of the trust Fund is a clear separation between the management company of the Fund and Trustee trustee. The Trustee is responsible for safeguarding the assets of the Fund and for the relevant activities of the Fund's stated objectives. Management company under contract with the Trustee manages the investment portfolio of the Fund and generally provides
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