Investment Funds

A fund’s portfolio manager decides on investments of the investment fund assets. Portfolio managers are licensed by the Securities Commission after successful completion of  the required specialized course. A management company must employ at least one portfolio manager to manage the investment fund.

When an investor places money in a fund, the investor buys investment units.  The number of investment units is obtained by dividing the investment (less the purchase-of-investment-unit fee) by the value of the investment unit on the day of payment.  

Based on the number of investment units, any investor can calculate the value of investment in the fund as a product of the daily value of investment units and the number of units the investor holds. 

When investors wish to withdraw their investments from a fund, they can do so by selling their investment units to the fund. The money paid equals the product of the number of investment units and their value on that day, less the redemption fee (maximum 1%).

An investment unit is a calculated proportionate share in the total net assets of open-end investment funds.

The value of an investment unit of an open-end investment fund is calculated as net asset value of the fund divided by the total number of investment units. Meaning, that if the net asset value of the fund is RSD 100,000, and the total number of investment units is 100, the value of one investment unit is RSD 1,000. If on the following day net asset value of the fund is RSD 10,000, the value of one investment unit will be RSD 1,100 (on a condition that the number of investment units did not change).

The initial value of investment units for all open-end funds amounts to RSD 1,000.
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