After the launch of the National Investment Fund for Education .. What are the investment funds and their advantages?
The government launched a national investment fund for education in the context of the state's interest in building Egyptian people, especially in the field of education and upgrading, and keen on sponsoring outstanding students. The first meeting of the Board of Directors of the Fund.
After the government launched this national investment fund, what are the investment funds, types and advantages? The "seventh day", through this report answers these questions from the information available by the Ministries of Investment and Planning and the Financial Supervisory Authority.
Investment funds are investment vehicles that raise the capital of a group of investors and manage them according to a specific investment strategy and objectives to achieve investment advantages that can not be achieved individually by one investor..
The investment fund includes a set of securities that are selected according to specific criteria and criteria that meet the objectives of the investment fund. These funds are managed by persons specialized in the financial market.
Investment funds are established to raise capital through the sale of shares known as "units" within a group of securities. The funds are also invested in a mutual fund called "portfolio".
Because investment funds are an instrument of investment and an investment program that is financed by a group of shareholders trading in a variety of properties, these funds must be managed professionally by a number of financial experts to invest privately in more than one diversified company.
The funds are divided into types of target and types of offering. For the types of target, there are about 6 funds, namely, "income funds", which are the cyclical funds that are interested in investing fixed financial instruments that are distributed regularly Such as bonds.
Another type of investment fund is the "growth funds", which are funds that aim at capital growth and therefore invest in capitalized stocks over a long period of time. This type of fund is geared towards investors who wish to deal with long-term investments.
The third type is the "balanced funds". This type of fund is called this name because it seeks to achieve specific objectives such as obtaining profits and moderate and balanced growth of capital while maintaining it. It also generates appropriate financial returns with a moderate percentage of Risk, which is the type of funds that the government invests to be a complementary tool in spending on a given area besides the budget allocated to it, as in the government investment fund for education.
Another type of investment fund is the "Floating Funds", which is similar to the aforementioned capital growth funds, but with different risk ratios. This type of fund invests in high risk securities.
The fifth type, known as "index funds", which is dependent on investment in a group of shares high index in the stock market, known as the sixth type of funds funds "financial market funds", short-term funds because they use short-term financial instruments , Such as treasury bills, and savings certificates, which are repayable every three months.
As for the types of investment funds in terms of placement, there are three types: "General Fund", a state-established investment fund that offers public offering units to investors in the country in accordance with the provisions of the Mutual Funds Regulations and "Private Fund" The state, however, is not a public fund that offers private placement units to investors.
The third type is the "foreign fund", a fund established outside the state, offering special units units to investors within the state in accordance with the provisions of investment funds.
However, what are the advantages of these funds and why they are established? A distinctive feature of investment funds is diversity. It provides a basket of securities that contribute to diversifying the investment portfolio. The funds also provide many types of shares, which helps investors, Small in stock purchase suitable for the size of their resources.
The aim is to establish investment funds to increase capital and provide financial returns, especially those balanced funds that are established for national purposes, as in the national investment funds launched by the government. Recently launched by the Government, to provide a sustainable funding mechanism for a number of purposes related to promoting excellence in education, fostering promising educational experiences and supporting leading educational facilities.
Related topics
– Investment Funds
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