Alfa-Bank mutual funds are becoming increasingly popular among the population of the Russian Federation. The main reason is to increase the yield of deposits.
What is a mutual fund?
The term Mutual Fund is the abbreviation of a mutual investment fund, a complex of property, which is based on the trust management of a specialized company. The purpose of the fund is to increase the value of property in the future.
The property of the fund consists of shares of founders. To create mutual funds, they must transfer the rights to dispose of their property to the management company.
Specialized company
Specialized is considered to be a company that manages a mutual investment fund. Management should satisfy the interests of investors, and not go beyond the law.
The investor's share is determined by the number of mutual funds. A share in itself is a security certifying ownership of the property. The share also determines the owner’s share in the fund.
Mutual Funds of Alfa-Bank
At the end of the last century, Alfa Capital became part of Alfa Bank. Today, the company has more than four hundred points of sale, which is a great advantage of the group.
Now customers are provided with a wide range of mutual funds. All of them can be divided into three large categories:
- classic;
- industry funds;
- specialized funds.
The liquidity, risk and profitability of Alfa-Bank mutual funds together with the investment structure distinguish them from each other. Classic mutual funds are bonds and stocks. Portfolio reliability is determined by the number of bonds in it. We must remember the main rule: with a large number of shares in the mutual fund portfolio, the profitability of Alfa-Bank funds will fall, but the risk of losing money will be very small. This rule also works in the opposite direction: the higher the share of shares in the structure of the unit investment fund, the higher its profitability, which means that the risk of the portfolio increases.
As for the industry unit investment funds, they relate to a specific sector of the economy. For example, to trade, resources, infrastructure and so on. Thus, if an investor invests his money in one of the funds, income will be received only if the corresponding sector of the economy grows.
Description of mutual investment funds. Classic mutual funds
From the name of mutual funds, it can be understood that their target audience is conservative investors who are not very prone to risky operations. Alfa-Bank’s classic mutual funds will appeal to those investors who wish to invest money in financial instruments that they understand, which are the components of the classic portfolio, that is, bonds and stocks.
Mutual fund managers are trying to balance the portfolio, making it thus less risky. The following mutual funds are classified as classic mutual funds:
- MICEX Index.
- Balance.
- Liquid shares.
- Bonds plus.
- Stocks growth.
- Eurobonds.
- Reserve.
This type of investment fund is the most common. They are in almost every specialized company. Monitoring the dynamics of mutual funds of Alfa-Bank or another management company makes it possible to understand how appropriate is the investment in a particular fund.
Alfa-Bank Mutual Investment Fund Balance
The main instruments in this mutual fund are stocks and bonds of large Russian companies. This is the main reason for the balance of the fund. Already during the first three years, Balance has grown in value by almost 65%.
In the first six months of the existence of this mutual fund, its value fell by 0.3%. However, by the end of the first year, the price of the Balance mutual investment fund had risen by almost 21%. Since the formation of the fund, its value has increased by 60%.
Alfa-Bank Mutual Investment Fund Growth Shares
This fund allows the investor to invest their money in shares of not very large and little-known companies. Thus, investors buy the securities of enterprises, while having a high growth prospect.
In addition, the Mutual Shares of Growth mutual fund provides an opportunity to invest in companies from all over the world. Due to this possibility, a high level of diversification is achieved.
In the first month after the foundation was created, its value increased by 0.72%. Six months later, the mutual fund added another + 13% to its value. From the moment the fund was created, its value has grown by more than 117%, which is almost two times more than the value of the Balance unit investment fund.
Alfa-Bank Mutual Investment Bonds Plus
The most reliable are those debt instruments that the state owns. Mutual Fund Alfa-Bank Bonds Plus enables an investor to buy low-risk securities . The issuers of such securities are the state.
Since its inception, the value of the Bonds Plus mutual fund has grown by 220%. This is one of the best indicators among all mutual funds provided by Alfa-Bank. Only Eurobonds (almost 300%) and Liquid Shares (approximately 230%) have a larger increase in value.
Other classic mutual funds provided by Alfa-Bank
Analysis of mutual funds of Alfa-Bank shows that the largest increase in value belongs to “Liquid shares” and “Eurobonds”. Bonds Plus were also slightly behind. Mutual Fund “Reserve” increased in value by 190%.
The only classic fund that has fallen in price since its inception is the MICEX Index. It has fallen in price by 12%, although at the beginning it showed good results - in three years its value has increased by half. The main instrument of this fund is the securities of domestic companies.
Specialized mutual funds
This category of funds is divided into three classes: “Strategic Investments”, “Alpha Capital” and “Gold”. From the name of the first fund one can understand that it involves investing investor funds in a portfolio that can be diversified by maturity and currency. Such portfolios may include long-term and medium-term securities. Over the first six months, the fund lost almost 5% in value, but now its price is 128% higher than it was at the time of its formation.
The gold unit investment fund fell very much. Three years after its inception, the price of the fund has increased by 76%, but at the moment the price increase is less than 1%.
Alfa Capital is one of the oldest funds among all mutual funds that are on the market. Its feature is interval character. At the moment, he has added almost 270% to the cost. This mutual investment fund consists of the most liquid shares, reliable bonds, as well as securities with a great prospect of significant growth.
Industry Funds
This group consists of five funds: Technology, Infrastructure, Brands, Trade, and Resources. The first in the list of funds enables an investor to invest money in shares of an enterprise that operate in the field of high technology. The main difference between the securities of such companies is a high growth prospect. Also, investments in this fund can be designed for a long period of time. Since the creation of the mutual fund, its value has grown by almost 110%. Although in the first year the price of the fund steadily fell.
Mutual Funds “Trade” and “Resources” increased in price by 65% each. The first fund provides an opportunity to make investments in companies that are related to the trading sector, as well as to the sectors of the chemical industry, mechanical engineering and food industry. Investing in Resources involves investing in the oil and gas sector of the economy, which is very promising in modern times.
Mutual investment funds Brands and Infrastructure lost 31% and 12%, respectively. Mutual Fund “Brands” allows you to invest in the financial sector. Portfolio diversification - by countries and currencies. "Infrastructure" involves the receipt of stable dividends from investing in the energy sector. However, in recent years its profitability has fallen significantly.
Briefly about reviews
When choosing a unit investment fund for investing funds, feedback on Alfa Bank mutual funds will come to the aid. Of course, they can be positive and negative. Many Internet users express their dissatisfaction with the fact that mutual funds cannot guarantee a stable income.
The most popular is the classic Eurobonds mutual fund that we mentioned. Also, many began to invest in industry-specific mutual funds, namely in high technology. Very often in a positive way they write that mutual funds expand the list of objects for investment.