What are the Advantages of Mutual Funds?

Safety - the activities of the mutual fund companies are regulated by the Law of the Republic of Latvia "On the Investment Management Companies". The mutual fund shares are publicly traded securities, with their issue registered in the Latvian Central Depository. The assets of the fund are kept separately from those of the investment company and the holding bank. The holding bank, acting independently from the investment company, double-checks its transaction orders prior to execution. The Financial and Capital Market Commission in turn supervises the functioning of the holding bank and the investment management company.

Liquidity - (ability to raise cash quickly by selling investments) - the investment managing company is obligated to repurchase the investment certificates of open-ended funds. These mutual fund shares may be freely purchased and sold.

Profitability - Mutual funds provide the potential of a much greater profitability than the traditional ways of handling money, e.g. current accounts, term deposits and others

Accessibility - the minimum investment in the funds is usually comparatively modest, so that even small investors can avail themselves of the mutual fund advantages.

Economy of Scale - when investing in a mutual fund, by acting together with other investors you become a single major investor, reducing the bank, brokerage and management costs.

Economy of Time - we take care of everything from the purchase of the securities to the management of the portfolio.

Diversification - the assets invested in the funds are spread among great many diverse securities thus reducing the financial risks.

Profesionalism - the investments are managed by professionals, who follow the financial market trends and search for the most advantageous investment opportunities, adjusting the portfolio holdings to assure you of maximum earnings.

Keeping Informed - you will find detailed information about each of the mutual funds of "SEB Wealth Management" in the prospectuses of the funds, which are available to you in our or the distributors' offices. Every quarter, or upon demand, you will receive an accounting of the results of the fund(s) activities, so that you will be able to examine the return on your investments and the actual investment portfolio of the fund(s).