Rus Articles Journal

What is the trust management?

Service in trust management of finance in Russia appeared long before dawn of collective investment. This service is in what the investor transfers (trusts) own means in management of a certain company or to the natural person. The elected managing director forms strategy according to wishes of the client and begins work in stock market what further earns reward for. It, as a rule, is defined as percent from the income or the fixed percent from the investment sum. The combination of two of these percent with various scales is most often applied, for example, remuneration of the managing director the above, than is higher profitability of investments.

Popularity of this service for not really small bonus is caused by an individual approach to each client. Despite this individual approach, managing directors already have a standard set of investment portfolios which they can offer clients. It means that the investor, placing the money, joins already existing portfolio made according to in advance accepted risk. Most often portfolio strategy are divided into three classes: low risk, moderate risk and aggressive.

Carrying out comparison of trust management with Mutual funds, once more flexible opportunities notes on formation of an investment portfolio. While interval share funds limit investors to investment terms, branch fonds of stocks - limitation of diversification, in trust management at desire of the client though all investments can be made in stocks of the companies of the second and third echelon that in the ambassador of events of May, 2007 became very actual.

At the choice of a form of investment you should not forget about such moment as taxes. It is worth reminding that the investors who made the investments in mutual fund pay a tax only once - at sale of shares. At trust management, investors are obliged to pay taxes every year. At the same time the rate of 13% for net income in the form of a gain of market value of papers and 9% for dividends is applied.

In the conclusion of article there is a wish to note that the introduction in ranks of individual clients is available to not everyone. Entrance ticket here makes from 5 million rubles against 10 thousand rubles in mutual funds.]