{"id":46535,"date":"2021-10-31T16:24:00","date_gmt":"2021-10-31T14:24:00","guid":{"rendered":"https:\/\/www.eticasgr.com\/storie\/news-events\/fondo-comune-di-investimento-definizione"},"modified":"2023-06-06T16:30:50","modified_gmt":"2023-06-06T14:30:50","slug":"collective-investment-funds","status":"publish","type":"post","link":"https:\/\/www.eticasgr.com\/en\/storie\/insights\/collective-investment-funds","title":{"rendered":"Collective investment funds, what they are and why invest"},"content":{"rendered":"\nCollective investment funds<\/strong> are a type of investment instrument established and administered by Asset Management Companies<\/strong>, or AMCs<\/strong>. These financial products are particularly suitable for savers<\/strong> and households<\/strong> that wish to increase the value of their equity over time by entrusting the management of their assets to a qualified professional.\n

A piggy bank divided into shares<\/strong><\/h2>\nA company that specialises in asset management collects money from individual investors and establishes a single autonomous equity fund<\/strong>, distinct from that of the AMC itself or any other subject involved in the fund’s operation. The collective equity fund can then be invested in different financial activities<\/strong> (equities, bonds, government securities), following specific investment policies <\/strong>approved by the Fund\u2019s rules<\/strong>. The collective fund’s assets are divided among the individual investors in the form of shares<\/strong>, which confer equal rights<\/strong>. Any gains and potential losses are then divided proportionately to the number of shares held.\n

The importance of diversification<\/strong><\/h2>\nThis type of investment allows savers to limit the risks<\/strong> compared to an investment in an individual security on the financial market. By subscribing to a collective fund, savers can diversify<\/strong> their investments without needing vast amounts of available capital.\n\nHowever, diversification does not guarantee a fixed return<\/strong> on a given date. Profit depends on the performance of the financial market and the securities in the portfolio.\n

What do professional asset managers do?<\/strong><\/h2>\nAsset managers generally adopt an active management strategy for the fund. This means that they manage the portfolio by increasing or reducing exposure to various sectors or individual securities based on strategic long-term or tactical short-term decisions. The AMC offers its customers access to the professional skills and expertise needed to operate efficiently on the markets and aims to invest the savings under its management to maximise the value over the medium-long term.\n\nThe lawfulness and rigour of this management service is monitored<\/strong> by a complex system of controls implemented by CONSOB<\/strong><\/a>, the Bank of Italy<\/strong><\/a> and, in the first instance, auditing companies and the custodian bank<\/strong> where the fund\u2019s securities and cash are held.\n\n\"Fondi\n

Collective investment funds: a classification<\/strong><\/h2>\nCollective funds can be classified in various ways. The initial distinction regards closed-end funds and open-end funds:\n