1. Think about the degree of risk you are willing to take. Unlike savings, the investment is associated with risk. However, you can determine the degree of investment risk yourself if you invest in a money market fund and a bond fund, you risk only zero or a slight return on investment. If you buy a share of the equity fund, you risk losing and investing in your total. The risk taken by the fund’s performance response is money market funds and bond funds by a percentage point, while equity funds by a percentage point. Determine the trade-off between risk and performance by exchanging funds and mutual funds.
2. Decide for how long you want to invest the pension. When choosing the right type of fund, it is necessary to increase when you will need the invested pension. The period for which you want to invest the pension should be at least the investment horizon of the fund. Money market funds (6 msc) have the shortest investment horizon, followed by bond funds (1 year), exchange funds and mutual funds (both 3 years), and equity funds (5 years).
Based on your answers to the first two questions, you should be able to determine the optimal fund category for yours.
3. Decide whether you want to invest in the mutual fund all in the Czech Republic or abroad. In contrast to domestic houses, foreign funds are subject to taxes and usually administration fees. On the other hand, when investing in foreign funds, you have to convert crowns into foreign currencies and pay fees from this conversion. You can find a detailed comparison of domestic and foreign funds here.
4. Decide whether you want to have a predominance of domestic or foreign securities in your portfolio. While sdlc funds abroad invest exclusively in foreign instruments, sdlc funds invest in czech and foreign instruments. By investing in more countries and small funds, the fund reduces territorial and currency risk, but at the same time there is a significant performance of the portfolio. When deciding whether you want to invest more in the Czech Republic or abroad, it will be especially important in your personal two Czech capital markets.
If you answered questions 1-4, V vbr is sewn on several funds. In these funds:
5.Pette and fund status. You should pay the utmost attention to the status of the invested fund’s strategy, the maximum entry and entry fees and the management fees. The fund’s investment strategy should be as precisely defined as possible and should roughly correspond to your ideas. High fees reduce a certain fund’s performance and therefore it is advisable to choose funds with the lowest fees. The argument that expensive funds employ better professionals and achieve performance has been empirically refuted and is therefore irrelevant.
6.Prohldnte if internetov strnky sprvce melted. The level of the website and, above all, the information provided on it testifies to the transparency of the fund manager and his willingness to provide additional information on their pensions. A green telephone line, a regular information about the development of the fund and the market should be a matter of course.
7. Do not look at the performance of the fund in the past and the name of the fund. Funds that place at the top of the imaginary performance scale today do not have to repeat this position in the future. This fact is usually pointed out in the fund prospectuses. The name of the fund can often be introduced and may not correspond to the investment of the fund.
8. Prefer a fund that reinvests the profits made and does not pay them through a dividend. Dividends are subject to income tax, regardless of the length of gossip of the share certificate. On the other hand, the income from the sale of a sub-certificate is not subject to tax, if it is crushed according to other msc.
Now you have selected the fund that best answers in the given criteria. Zbv just buy it.
9.Invest regularly. Due to the fact that the value of the share certificate and the mutual fund is known to fluctuate, it is worthwhile to regularly buy the currency of the share certificates instead of buying one of these units. This reduces the risk of buying a leaf at a high price.
Now you have become a subordinate of the fund and not yet, not Vm dt one valuable piece of advice:
10.Bute trpliv. Do not expect that your pensions will be evaluated first, because you will find the fund that will have the best performance in its category. Do not react hastily to the fall in the price of a sublease by selling it. If you do not have a lot of free time and strong nerves, do not follow the price of a leaf sheet every day. Investing in a mutual fund must be considered as a long-term investment process, the return can be expected after the minimum investment horizon.
Are you not sure that you really chose the best fund? Then pette nae gave a recommendation.