Mutual Funds
Mutual funds source their capital from the investments of a large number of people. Their funds are then invested in the stock market, equities or other negotiable papers. Mutual funds do not guarantee a profit and the net value of assets fluctuates day by day depending on the returns obtained. There is no fixed time for the division of profit; therefore, an investor can leave the fund at any time. In this case, the investor will receive the equivalent net value of his/her shares on the day he/she leaves the fund.
Fixed-Income Equity Funds
The main activities of these funds include investing in government or corporate bonds or banking deposits. Investments in this type of fund have no maturity date. Due to the large number of equities, these funds are highly varied. Investors enjoy a minimum guaranteed profit which is divided among them atspecified periods (monthly or quarterly as decided by the fund manager). If the fund manager fails to pay the guaranteed profit, the surety is required to pay the guaranteed profit in lieu of the commission they receive.
Exchange-Traded Funds
This type of fund was created with the aim of reducing investment risks. They attract investments and buy various equities prescribed in the fund prospectus. The fund manager invests in these equities and predicts a guaranteed profit. The profit guarantee here means that if the minimum guaranteed profit is not earned, the fund manager is required to pay this from his/her commission. In the event that the fund manager’s commission is insufficient, he/she will have no further liability.
Index Funds
Index funds are a type of mutual fund aimed at attaining a return rate on a selected index; for example, the S&P 500 Index (Standard & Poor’s Index), whichlists 500 superior stocks on the New York Stock Exchange and NASDAQ and is used as a comparison tool for stock exchange transactions and a performance assessment tool for large corporations. In other words, this fund invests its assets in the stock or bonds of a special index portfolio. Some of the index funds keep derivative tools in their portfolio in addition to stock and bonds. The fund can invest in all stocks in the index portfolio or choose a smaller sample (a fixed percentage of index stock) as its investment portfolio. As these funds follow a specific index and their portfolio requires no significant changes, their administration is relatively inactive compared with other investment funds. For further information about any of our funds, please visit the relevant website:
Portfolio Management
Investment of course involves a certain amount of risk. Choosing the right investment options requires in-depth knowledge and information on the industry as well as on political and social conditions. Investors need to compare the various options available to them, to ensure they make the right choice of investment plan: one that will yield maximum profit in the desired time span (shortor mediumterm), witha minimal risk factor.
Saman Bank itself invests a portion of its assets in short-term investments offering short-term benefits. It also invests in the stock market and financial markets on a medium-term basis. Saman Bank’s expertise and experience in this field, coupled with our access to specialist analytical reports, place us in a prime position to provide reliable, comprehensivefinancial advice to customers wishing to invest in the stock market. Our expertswill advise you on sound investment options in terms of risk, expected rate of return and time span for your investment.
Monday 4/19/2021