A couple of investment hints.Choose a fund - or funds - that meet your needs. Before choosing a fund, each person should ask themselves some questions:
Then all you need to do is choose a fund whose investment goals and risk level match your expectations. Caution or risk? What type of personality does money awake in you? Reflect for a moment, what do you look for when choosing a method of savings? Is the first thing safety and stability of profits or perhaps more imperative is how much you can earn? Is risk avoidance the most important factor to you or maybe is it the corporate image where you entrust your money? Each and every one of us is different. We have different preferences and customs. This refers also to various decisions concerning finances, e.g. how and where to place our money. Investment funds are financial instruments which are strongly connected with a customer’s type of personality and expectations. That is why determining your sensitivity to risk will help you to choose an optimal group of funds - such whose investment policy meets your expectations. Depending on how you have answered the questions at the top of the page, you can determine what type of investor you are and decide what kind of funds are the most suitable for you. The table below illustrates different kinds of sensitivity to investment risk and their meaning in choosing a proper investment.
Read the following guide - it will help you make a good choice! 1. Decide on long-term investment The experience of fully developed capital markets and results from funds histories in various countries confirm that long-term savings are the most profitable - meaning at least several or a dozen or so years. Investment funds attain the best effects in the longer perspective; moreover a distant investment horizon gives the possibility of waiting out fluctuating conditions which occur on every stock exchange. In short - the longer you save, the more you gain. 2. Invest systematically Our experiences show that in the case of balanced and joint-stock funds, it is more profitable to systematically invest smaller sums, than to pay a single larger sum with the view of resignation after many years. By paying money systematically, you protect yourself from a decrease in value of your entire investment in a time of a recession. Better to invest a specific sum, e.g. monthly, knowing those unfavourable periods in the exchange is relatively short in comparison to an investment spread over time and sequential payments will probably be made during more profitable market conditions. In this way the risk that you carry is spread out over time and is definitely smaller. 3. Don’t lose your head during a crash Those that are patient playing the exchange are rewarded. When there is a vision of a crash, one should not resign, because this is a transition period. You can simply wait out the unprofitable moment or, being very uneasy, transfer a part of the invested capital from a joint stock fund to a stable income fund (cash market or bond), and at the first signals of a boom change back to the fund. The worst solution is transferring money from one Fund Company to another in a panic. 4. Don’t submit to stereotypes Up to the present in our country there were opinions which discouraged people from investing on the capital market, and consequently deprived those chances for profits. Below we give several facts which refute myths most often occurring on our market. a) It is false, that in order to play the market, it is necessary to have considerable start-up capital. Participation in investment funds allows taking advantage of market conditions with small investments. The first minimum payment to most Union Investment funds amounts to 50 PLN, sequential payments may be at the same level - or higher. b) It is false, that investing in funds demands a wide knowledge of the capital market. Analysts and investment advisers employed in Fund Company unceasingly analyze markets, rate companies and their development plans in your name. It’s worth taking advantage of the professional knowledge, analytic abilities and many years of experience, from which the employees of the Fund Company use in their work for the fund. For this reason the participant does not need to observe the market situation on his own. c) It is false, that investing is expensive. Management fees of investment funds are strictly defined by the law concerning investment funds, purchase fees in Union Investment funds do not exceed 5%, and in the case of UniKorona Obligacje FIO - 1%. There are no charges for the purchase of units in UniKorona Pieniężny FIO or UniWIBID SFIO at all! Additionally, you can also take advantage of promotions which occur every now and then. We placed a full description of every fund in the Funds for everyone section. We invite you to get acquainted with them before making an investment decision! The site has been last updated on: 18.04.2006 |
 |
 |
 |