Mineral Invest Group
An investment company is an organization that carries out collective investments. The main functions of investment companies are investment diversification and investment portfolio management, which includes securities of various issuers and other types of equity instruments. In accordance with the situation, these financial intermediaries carry out the purchase and sale of securities, redistributing capital into promising industries and enterprises.
In the Russian semantic field, the phrase "investment company" often refers to a legal entity that has a license from the FSFM to conduct at least brokerage and / or dealer operations. If such a legal entity is also a credit organization at the same time, that is, it has the relevant licenses of the Central Bank of Russia, then such a legal entity is called in the Russian tradition - an investment bank.
Investment companies are represented by holding companies, financial groups, financial companies. There are closed-type investment companies with a fixed capital structure and an open type, changing the capital structure through periodic issuance of shares.
Investment companies in many countries produce and sell their own securities, mainly small-scale individual investors. On the proceeds they buy securities of enterprises and banks, whereby they provide their clients with income. In fact, they manage the funds of their customers.
The combination of funds of individual individuals and legal entities for further investment in specific projects, programs, and prospective enterprises are aimed at securing stable profits for investors. And this profit arises not only due to the accumulation of significant funds, but, first of all, due to the highly professional activity of the participants in the investment process. Investment funds can be invested in stocks and bonds of various enterprises. The financial risks of investors are significantly reduced, because when the value of some securities falls, the price of others increases. An important advantage for an investor is to obtain the services of a financial manager, in whose role the investment company acts.