You have accumulated free funds, and would like to increase their value further? Possibly, you plan to put away a certain amount monthly and invest a certain portion of your income to accumulate, long-term, much bigger assets?
If you want to have more money, invest in SEB’s mutual funds that enable each individual to invest in the economic development of various countries, regions and sectors of industry, and have quite substantial earnings.
How much can you expect to earn by investing in mutual funds? Make your own calculations with the help of SEB Bank’s calculation matrix.
What is a mutual fund?
A mutual fund is one of the most popular investment products worldwide, where assets owned by legal and natural persons and entrusted to a management company are managed and invested by professionals.
It is useful for you, because:
- you may earn more – money transferred to the fund is invested in shares and bonds of promising companies as well as in other securities with the aim to get an increase in the value of assets managed by the fund;
- investments are diversified – by investing into different securities, risk hedging is achieved, and value fluctuation depends on the entire market results rather than on changes in the value of separate securities;
- investments are managed professionally:
- funds are managed by professionals with long-standing expertise in asset management and licensed by the Securities Commission;
- based on daily market surveys, prompt investment decisions are taken;
- better investment opportunities are offered – by investing assets entrusted by the customers to the mutual fund, the mutual fund manager can buy securities at much better terms, also, the fund manager has a possibility to acquire securities that are otherwise unavailable to an individual investor;
- investment liquidity is ensured – if cash is needed, the investor may anytime sell his investment units, in whole or in part;
- funds operate transparently – the price of each fund unit as daily announced on the Internet, detailed reports are quarterly produced; fees applied by the funds are simple and clear;
- favourable taxation environment – in Lithuania, if an investment in a mutual fund is at a longer than one-year maturity, the gain is not subject to private individuals’ income tax.
Mutual funds represent a perfect product for long-term accumulation of funds. Here are some examples of easy accumulation of an impressive amount by investing in products with a diverse yield:
One-off investment (here: LTL 1 000): even a 1-2 % difference in the yield has a great impact on the amount accumulated over a longer term:
|Gain||3 years||5 years||10 years||15 years||20 years||25 years||30 years|
|2 per cent||1061 Lt||1104 Lt||1218 Lt||1345 Lt||1485 Lt||1640 Lt||1811 Lt|
|5 per cent||1157 Lt||1276 Lt||1628 Lt||2078 Lt||2653 Lt||3386 Lt||4321 Lt|
|8 per cent||1259 Lt||1469 Lt||2158 Lt||3172 Lt||4660 Lt||6848 Lt||10062 Lt|
|10 per cent||1331 Lt||1610 Lt||2593 Lt||4177 Lt||6727 Lt||10834 Lt||17449 Lt|
Continuously investing even small amounts you may save a lot.
With the help of SEB Bank’s calculation matrix, you will see what earning you can expect having invested in various mutual funds.
In order to invest your money in mutual funds, you may contact any branch of SEB Bank. You will be offered SEB Bank’s expert advice, if you call 1528 or send an e-mail message to email@example.com.