An investment fund is a joint-stock company that carries out activities to raise funds, invest them and trade in securities. To organize such a fund, it is necessary to determine the type and structure of assets.
Instructions
Step 1
Determine the type of investment and the market niche in which the investment fund will be involved. Depending on this, the direction of investment for your company is chosen. The most popular are equity and bond funds, and there are mortgage, index, venture, loan funds and more. If you cannot determine where to invest your fund's money, then organize a mixed investment fund.
Step 2
Select the time when the purchase / sale of shares will be carried out. Depending on this, investment funds are divided into: open (transactions are carried out daily), interval (sets a certain period of time in the rules) and closed (shares are sold when the fund is formed). Each of these types has its own pros and cons. Thus, open-ended funds are more liquid, and closed-end funds have a high yield.
Step 3
Form a contract, which will contain a set of rules for managing an investment fund and an investment strategy for activities. Register this agreement with government agencies. It should be noted that an investment fund is not a legal entity, therefore, it does not require the implementation of mandatory procedures for this case.
Step 4
Join investment fund members. This is done by writing a standard application for joining and making a payment for a share of a certain property or money. After that, a list of investors is created, which is submitted to the registration authorities to complete the organization of the fund. All further management of investment funds is transferred to the management company, with which an appropriate agreement is concluded. If the fund is open, then the registration procedure for new members will need to be carried out quite often.
