Posted on December 23, 2009 with Comments Off
Unlike the banking products that will record all public funds in financial accounting, investment funds in mutual funds are recorded separately from the accounting firm of investment managers and custodian banks. Why?
This happens because the mutual fund is a separate legal form, Establishments conducted by the investment managers and custodian banks based on legal entity deed and must have basic bookkeeping and tax number. In the event of bankruptcy, you will receive back the funds saved in the bank from the payment by the Deposit Insurance Institution up to a particular value or from the liquidation of assets.
While the mutual fund, if the investment manager or custodian banks declared bankrupt, mutual fund investors will receive back their investment funds in accordance with the net asset value / last unit. Alternatively, the management or administration of these funds transferred to the investment manager or other custodian bank based on the approval of the Capital Market Supervisory Agency and Financial Institution.
Posted on June 17, 2009 with Comments Off
Investment period in the banking and mutual funds is different. In banking, the placement period is generally short-term funds. Savings products can be withdrawn at any time, while time deposits of one month to two years. Usually, the shorter the investment period, interest will be accepted would be lower.
Meanwhile, in investing in mutual funds, you can set the investment period in accordance with the needs and investment objectives. Customers can invest ranging from short to long term. While in general, the longer the period of time to invest in a mutual fund, the higher the investment results. However, customers kept open the possibility to earn high investment returns in the short term.
Related costs, the bank will charge a monthly administration, particularly on savings products. However, the mutual fund, you will pay for the cost of purchase and resale units in accordance with the policies set forth in the prospectus. Then, how you can get around obtain the potential yield as possible by investing in mutual funds?
Posted on May 17, 2009 with Comments Off
Regulations governing how mutual funds work very different from the banks, this is intended to provide protection to investors. In mutual funds, there are several parties concerned, Investment manager with the custodian bank issuing mutual fund products. Custodian banks charge to store and do all kinds of administrative activities in the management of mutual funds.
Meanwhile, the investment manager in charge of managing mutual fund investments in accordance with existing regulations and investment policies in order to obtain maximum results. Both have an unaffiliated party. This is intended so they can watch each other. If one party in breach, the other party shall report the matter to the Capital Market Supervisory Agency and Financial Institution as the capital market authority.
Separately, investment managers and custodian banks provide separate reports for the managed investment funds to the Capital Market Supervisory Agency and Financial Institution a regular basis.
Unlike the banking products that will record all public funds in financial accounting, investment funds in mutual funds are recorded separately from the accounting firm of investment managers and custodian banks. Why?
