FaQ - frequently asked questions and answers
Mutual funds
FaQ - frequently asked questions and answers
Mutual funds
What you should know about investing in mutual funds
Bond funds strive for the highest possible appreciation of the funds in the fund, primarily resulting from the interest income of bond instruments and from the capital appreciation of these instruments. Given that these funds can invest in bond instruments denominated in foreign currencies, they are usually hedged against currency risk in view of the yield potential of the bond instruments.
Equity funds are widely diversified stock portfolios, investing in many (dozens) of stocks, thereby significantly reducing the risk of a decline in an individual stock title. They are the most diverse category of mutual funds, as they can apply different investment strategies and take advantage of the diversity of stock markets. According to the investment strategy, we can divide them into benchmark funds that copy the given market or index, stock-picking funds that look for investment potential in individual companies, or equity funds of funds that invest in units of other equity funds. They can be divided according to their focus on developed and developing economies, different territories (Europe, Asia, etc.) or specific countries (Czech Republic, USA, Japan, etc.) and, last but not least, on individual economic sectors (technology, pharmaceuticals, energy, etc.).
Balanced funds strive for the highest possible appreciation of funds in the medium to long-term investment horizon by investing in a mixed portfolio composed of individual asset classes – money market instruments, bonds and shares. The equity portion of the balanced fund portfolio is used to significantly appreciate the investment above the level achieved with bonds and money market instruments in the event of stock market growth. The conservative part of the portfolio of balanced funds, made up of money market instruments and bonds, ensures the mitigation of the risk of stock markets in the event of their unfavorable development and the stabilization of the fund's returns.
The goal of real estate funds is a stable appreciation of the invested funds of shareholders, which are invested in commercial real estate. The main part of the fund's income is made up of income from the rental of these properties. This income, combined with active property management and the growth of their market price, can generate very interesting returns. Real estate funds invest most of their funds (up to 80%) in tangible, visible and easily valued assets, i.e. in specific real estate. To ensure the payment of the redeeming shareholders, the funds hold part of the funds in quickly liquid financial assets – money market instruments and bonds.
You can invest in mutual funds of EAM ČR from 100 CZK. There is no limit to the amount for regular resale.
Yes, it is possible to invest comfortably through the George service. To conclude a contract, visit any Česká spořitelna branch.
Investment in mutual funds is not insured due to the fact that it is not a deposit, but an investment in securities. Investments and transactions are supervised by the state body Czech National Bank, which follows strict rules defined by law, and Česká spořitelna, a.s., which controls calculations and management. Each unitholder has the opportunity to monitor the development of his investment (share price) on a daily basis, for example in the daily press (HN) or on the official website www.erste-am.cz or on the website www.investicnicentrum.cz
The obligation to include the income from the sale of shares in the tax return always applies to legal entities and business entities. For natural persons, non-entrepreneurs, the discount applies if they stay in the fund continuously for more than 3 years. After this time, the citizen no longer has to tax the income, which is the difference between the invested amount and the amount to be paid.
The manager of the mutual fund releases the funds to pay the liabilities to the shareholders for the purchased shares, usually within three working days. In the event that there are not enough free funds in the mutual fund, it is obliged to obtain them by selling securities from the mutual fund's assets within the statutory period of 15 working days. However, the rules of professional care must be observed when selling securities from the property of a mutual fund. Even on the day the funds are released for the settlement of redemptions, these are credited to the shareholders' accounts, if their accounts are also maintained by Česká spořitelna (within one bank, according to the Act on Payment Systems, the funds must be debited and credited on the same day). That is why, even when share certificates are exchanged, the funds for purchased share certificates are credited to the target fund's current account on the day they are released. From the above, it follows that the unitholder cannot calculate for sure, even when exchanging units, when the funds will be released for purchased units from the initial fund and credited to the account of the target fund. This uncertainty regarding the settlement date of redemptions is greater for equity funds than, for example, for money market funds. The accounting of individual funds and their bank accounts are completely separate from the accounting of the investment company and its bank accounts.
In accordance with the fund's statute, the investment company always issues unit certificates (and they are credited to the shareholder's asset account) on the first working day after the funds are credited to the fund's account (if the funds could be assigned to the relevant order). An earlier date for the issue of share certificates is technically not possible, as the current value for which the share certificates are to be issued is not yet known (calculated). On this day, the shareholder's money is transferred from the so-called investment sub-account to the current account and the fund manager can use it for the first time. The accounting redemption of share certificates (i.e. their write-off from the shareholder's asset account) usually takes place on the second working day after the submission of the redemption request and always at the current value on the date of submission of the redemption request. The date when there was a change in the number of share certificates in the shareholder's property account is indicated on the statement from the property account. The above-mentioned technological procedures may not be followed in the event that there is a suspension of the issuance or redemption of share certificates, in accordance with the law and the fund's statute. Such a suspension could occur in cases of extraordinary situations (e.g. malfunction of systems, power outages, terrorist attacks, etc.). However, even when dealing with extraordinary situations, the investment company must prioritize the interests of shareholders over its own interests.
Act No. 189/2004 Coll., on collective investment, which governs the fund's statutes in § 11, paragraph 1, stipulates that a share certificate is always issued for an amount that is equal to its current value announced on the decisive date, i.e. on crediting the shareholder's funds to the fund account. The purchase of share certificate of the target fund is therefore always carried out in a standard way, even within the so-called share certificate exchange, and there is always at least a one-day difference between the share certificate write-off of one fund and the share certificate credit of the other fund. (If a certain amount of time is needed to create a sufficient volume of funds for redemptions by the fund manager, who must take care of the legitimate interests of other shareholders, the difference in these justified cases may be up to fifteen working days in accordance with the law.)
On the day of crediting the funds to the fund account (day T), the current value of the assets in the mutual fund corresponding to one share certificate is calculated. The calculation of the current value from day T may not take place until the following working day (T +1 working day). The current value from date T is published the next working day after its calculation (T+2 working days).
Always for the current value on the date of application submission (day T), the current value from day T is calculated the following working day (T+1 working day), the current value is published the following working day after its calculation (T+2 working days). Share certificate cannot be redeemed on day T, as the price (current value of the share certificate) at which this settlement must be made is not yet known, nor is the number of share certificates that will be redeemed known.
If the client does not have a Procurement Agreement with Česká spořitelna, i.e. does not yet own any domestic or foreign mutual fund, he must come to a branch of Česká spořitelna to sign it. Together with the Procurement Agreement, the client simultaneously signs free investing, thanks to which it is sufficient to send money directly to his current account to purchase share certificates of the selected fund and to indicate the number of the asset account of the investment instruments assigned to him as a variable symbol. It is only necessary to come to the Česká spořitelna branch once, and then the client can invest in the selected fund without any further additions.
Another purchase is a standard service for clients who have already concluded a procurement contract with Česká spořitelna and established their asset account for investment instruments (MUIN) and want to make another one-off purchase. This is realized only by sending funds to the current account of the selected fund; the variable symbol is the asset account number of the client's investment instruments. It is supported by George service.
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