Investing in Funds
Investment funds consolidate the money of many investors. The funds are managed by professionals.
The first investment funds in Lithuania appeared in 2004. Nordea Bank registered its funds for public distribution in 2006 and offered its clients the possibility to invest in 40 funds. It is possible to invest in more than 50 investment funds, now.
The first investment funds were launched in 1924 in Boston, USA. Households investments have exceeded investment made by corporate entities in 1954 (source: www.ici.org).
Investment funds offer a investment and saving solution with a clear and transparent price formation, easy transfer procedure, and quick possibility to withdraw the sums invested.
The investor purchases the investment fund units:
The investor sells the investment fund units:
Each litas entrusted to us is invested in securities in the region of your choice. The manager of the fund performs a thorough analysis of financial markets and purchases stocks, bonds and money market instruments for the investment fund. When the value of the securities (stocks and bonds) in the market goes up, the price of the share you purchased increases together with the total value of the money invested.
For example, if the price of an investment share is 10 euros and you would like to invest 1,000 euros, you purchase 1,000 / 10 = 100 shares.
After one year the share price of the investment fund you possess goes up by 10 percent and is now 11 euros per share. Thus, the 1,000 euros you had last year is now worth 100*11=1,100 euros, and your annual income is 100 euros. Your money has earned you more money!