Prospects for the development of investment funds
At the moment when we want to assess the prospects for the development of investment funds in Russia, an obvious comparison with identical financial products of Western countries is immediately imposed. Therefore, in order to assess the prospects for development, it is necessary to understand where the potential of this very development exists. What should you strive for?
And here we can "walk" through domestic funds, and point out the flaws in comparison with Western standards.
The main problems of Russian mutual funds
Management quality and cost
The clearest example of this item is index mutual funds. These are funds whose portfolio is made up of securities, in terms of nomenclature and share, completely copying one or another index. Thus, the managers functions are limited only to timely balancing in accordance with the composition of the index. However, the management fees in most of these funds remain at the level of aggressive funds that are actively managed. Index funds are very popular in the US because they are considered less risky and have a high profit potential. In the US, the fees for managing such funds are significantly lower than other equity funds, which cannot be said about domestic index mutual funds.
In Western practice, there are transparent and, most importantly, operational methods for the purchase and sale of units of mutual funds. Such funds are even traded on the exchange and the process of buying or selling takes literally a fraction of a second. Unfortunately, this cannot yet be said about mutual funds in Russia.
Actually, we can continue listing some of the flaws of our investment funds, but in this format we will not do this. The main thing is that we understand the direction in which we need to move. The experience of foreign markets will help Russian funds quickly find their bearings and apply all the best in their work.
Lets hope and expect positive progress. The main thing is that there is development potential!