What are the categories of OPC?
- What are the categories of OPC?
- Can an OPC drop to 0?
- How does a structured product work?
- What are mutual funds?
- What is the net asset value of a mutual fund?
- How is a structured product constructed?
- How are management fees charged?
- What are the advantages of mutual funds?
- What are OPCs?
- What are the benefits of mutual funds?
- What are the different types of mutual funds?
The OPCs are divided into two large categories investment funds: “UCITS” (undertakings for collective investment in transferable securities) and “AIFs” (alternative investment funds).
For that the value of a SICAV drop to 0it is necessary that all securities in the portfolio lose 100% of their value. In practice, this does notis not possible, because the listing of a security is suspended when it loses too much value.
The structured products allow you to benefit from a potential return linked to the performance of an underlying asset while providing partial or total capital protection at maturity.
One Collective Investment Scheme is a fund managed by a financial management company, in which several investors place their money in order to make it grow. In the context of life insurance contracts, UCIs are also called “units of account”.
The net asset value of a mutual fund represents the value of all assets (stocks, bonds, monetary products, etc.) held in the portfolio of theOPCless any debts.
One structured product is mainly defined with the following characteristics: underlying, term, currency, capital protection barrier at maturity, expected return, recognition frequency, redemption conditions.
The management fees are calculated over a year, but they can be collected every month. For example, if you invest €10,000 with a manager who takes 0.5% of management feesit is likely that you will pay around €4.20 per month, which is equivalent to paying €50 of fresh per year.
Mutual funds have many advantages, including the fact of delegating the management of their money to professionals and of being exposed to diversified and sometimes difficult-to-access assets, such as the debt of emerging countries or foreign currencies.
What are OPCs? Collective Investment Schemes (OPC) are financial instruments developed by approved companies to manage public savings according to a pre-defined orientation. They are sort of collective portfolios managed by professionals.
UCIs thus offer the possibility of accessing a diversified portfolio of transferable securities.
In the large family of UCIs, there are mainly Sicavs (Investment companies with variable capital) and FCPs (mutual funds). This is a formal difference, which does not change anything for the saver: he is a shareholder in the first case, a partner in the second.