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How To Improve Result Of Investments: Share Investment Funds

You have already started to invest in Share Investment Fund? And how you have made it? I can say that every tenth of those who will read these lines, invested at least once and now waits for growth.

Is this strategy correct? As a whole, yes it is. Growth will be obligatory. And you necessarily will get profit provided that you have chosen good fund, certainly.

But it is possible to start to get the profit much earlier. And big profit.

How it to make? You can put in fund not all money, and in parts and every month to do small payments. By the way, if you don’t have big initial sum such strategy allows creating the decent capital with small monthly contributions.

As you know, second half of last year was not very successful for SIF and the market as a whole. Fund Solid-Invest has grown from 12.05.06 till all on 5,1 %. Thus this fund stably enough keeps in market leaders. RTS index has also shown profitableness in 6.49 %.

And now let’s look at result of my investments: I have received profitableness for the same period in 8,96 %. I put about an identical amount of money every month. Except one month: in July 2006 I have enclosed approximately 30 % from all investments for a year.

It is necessary to admit, these 30 % have come to fund at almost minimum cost of the share for all period. If I put in regular intervals my result would be around 8 % that all the same practically on 3 % above, than at a lump sum.

Thus I managed to beat not only fund in which I was put, but the market that is much more important in the long-term plan.

Whether there are at this strategy minuses: yes there is. If the market constantly grows, you receive less.

On the other hand, the given strategy possesses the big advantages: risks of an investment decrease, the capital can be created practically from zero.

The share investment fund has also other possibilities to “wind” profitableness. Feature of these types of funds consists in that it is legislatively authorized to them to have in the portfolio of the share the open and closed joint stock companies which don’t address at a stock exchange. To determine cost of such shares the independent appraiser who as it is supposed carries out the deep analysis should also gives clean opinion about the price of shares of this company. In a reality this conclusion can quite appear subjective enough. The appraiser can estimate the certain enterprise which shares are included into the SIF portfolio, at the overestimated cost. A management company, being based on its conclusion, produces revaluation of net assets value of the fund, and shareholders will see a solid gain of profitableness.

It is very important that government, despite this recession is not abandoning to assist small businesses. And small business grants can be a real helper right now.

But, of course, you should understand that today the fight for small business grants as well as for other types of grants is harsher. This is natural – more businesses need them. So before you start your battle for the small business grants, please make sure to visit this blog for more info about grant industry.

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