What are the categories of OPC?

What are the categories of OPC?

The OPCs are divided into two large categories investment funds: “UCITS” (undertakings for collective investment in transferable securities) and “AIFs” (alternative investment funds).

Can an OPC drop to 0?

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.

How does a structured product work?

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.

What are mutual funds?

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”.

What is the net asset value of a mutual fund?

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.

How is a structured product constructed?

One structured product is mainly defined with the following characteristics: underlying, term, currency, capital protection barrier at maturity, expected return, recognition frequency, redemption conditions.

How are management fees charged?

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.

What are the advantages of mutual funds?

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?

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.

What are the benefits of mutual funds?

UCIs thus offer the possibility of accessing a diversified portfolio of transferable securities.

What are the different types of mutual funds?

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.