Additional informations

How can the investors gain access to the investment fund ?

Step 1: Develop your customized investment plan
Create a comprehensive plan that outlines your desired investment amount and your comfort level with risk

Step 2:  Streamlined Fund access
Visit our company headquarters to complete the Application Form and Purchase request, allowing you to acquire units in the fund.

The Application Form is provided to you at no cost and should be submitted prior to your initial payment to the fund.

To gain access to the fund, please bring the following documentation:

For individuals:
Valid ID or passport;
Proof of an active denar current account with a bank.

  • For legal entities:
    Copy of the registration certificate from the central register
    Photocopy of the ID card or passport of the authorized representative (director).

Step 3: Fund your investment
Depending on your chosen investment type, make a payment to the fund’s account at NLB Tutunska Bank AD Skopje.

Investors have two payment methods:

  • One-time payment – Investors make a lump sum investment.
  • Investment plan – Investors can make multiple payments over a specified period).

Step 4: Confirmation of purchase

Upon payment, you will receive a confirmation document specifying the number of fund units you have purchased.

Please note that the purchase of fund units follows the unknown price method, ensuring you obtain the appropriate number of units based on their value on the day of payment receipt. 

If your payment is received by the fund before 2:00 pm, the fund units will be purchased at their value calculated on the following working day. If the payment arrives after 2:00 pm, units will be purchased at the value determined from the second working day after the payment.

Step 5: Convenient Fund withdrawals

When you require funds, simply submit a payment request to initiate a payout from the fund. You have the flexibility to choose whether you want to receive the full amount or a partial payout of your fund units.

Determining the suitable investment fund type for your needs

Discovering the right investment fund for your needs requires careful consideration of various factors.

Define your financial goals: Clearly outline your investment objectives.Are you seeking long-term growth, regular income, capital preservation or a combination of these? Assess your risk tolerance: Determine your comfort level with potential fluctuations in investment values. Are you open to higher risks for potentially greater returns, or do you prefer lower volatility and more stable investments?

Determine your investment horizon: Consider the duration for which you intend to invest. Short-term goals may favor conservative funds, while long-term goals can allow for exposure to higher-yielding investments.

Conduct research: Explore different fund types, understanding their characteristics and investment strategies. Review funds prospectuses, which provide vital information about objectives, strategies, risks and historical performance.

Consider diversification: Mitigate risk by diversifying investments across various asset classes and sectors. Assess whether a single fund or a combination would provide the desired portfolio diversification.

Seek professional advice: Consult experienced financial advisors for personalized guidance based on your circumstances, goals and risk tolerance.They can help navigate the complexities of fund selection and construct a well-rounded investment portfolio.

Making informed decisions based on thorough research, professional advice and alignment with your financial objectives is crucial for successful investing.

Types of investment funds

Cash funds

A Cash fund is a mutual fund that focuses on investing in highly liquid and short-term financial instruments with a short maturity. It refers to a pool of money set aside for immediate use or as reserve for emergencies and unexpected expenses. Cash funds are commonly maintained by individuals, organizations or businesses to ensure readily available funds for day-to-day expenses, short-term obligations, or unforeseen circumstances.

They serve different purposes depending on the context. For individuals, a cash fund can serve as a personal emergency fund or savings account, specifically designated for future goals or expenses. In the business world, cash funds are established to manage working capital needs.

The primary advantage of maintaining a cash fund is the ability to access liquid assets quickly, without relying on credit or incurring additional costs. By having cash readily available, individuals or organizations can address immediate financial needs and seize time-sensitive opportunities. Moreover, a cash fund provides a sense of financial security and stability, acting as a buffer against unforeseen circumstances.

Cash funds offer conservative investment option with lower returns compared to bond funds or equity funds, while providing the advantage of lower risk to these alternatives.

Bond Funds

A bond fund is a specialized mutual fund that focuses on investing in bonds, with the primary objective to generate income through interest payments and potential capital appreciation.These funds concentrate on specific types of bonds, such as corporate bonds, government bonds and bonds from other entities, and categorize them based on maturity time frames.

Investing in bond funds offer convenient access to a diversified bond portfolio, eliminating the need for individual multiple bond purchases and associated transaction costs. With diversification, bond funds help mitigate the impact of any individual bond’s performance of non-payment of interest or principal by any single issuer.

They are an advantageous choice for investors seeking income,portfolio stability and lower risk tolerance.

Compared to cash funds, bond funds carry a higher level of risk due to the potential for fluctuations in interest rates and credit risks, associated with the bonds held in the fund. However, they also have the potential to generate higher returns over the long term.

Equity funds

An equity fund is a type of mutual fund that primarily invests in stocks of publicly traded companies, with the main objective to provide investors with long-term capital appreciation. By participating in the potential growth of this companies,equity funds aim for potentially higher returns over time. They achieve diversification by holding a portfolio of stocks across various sectors and industries.

Equity funds can be classified based on investment styles (such as growth, value, or blend), market capitalization (large-cap, mid-cap or small-cap), geographic focus (domestic or international), or sector-specific (technology, finance, healthcare or energy). 

Investing in an equity fund allows individuals to participate in the stock market’s growth potential, while benefiting from diversification. The inclusion of stocks from different sectors and industries in the fund’s portfolio, helps mitigate investment risk, as the performance of individual stocks may vary.

Equity funds are suitable for investors with a long investment horizon and tolerance for short-term market fluctuations. They are also attractive for investors seeking high returns and capital growth, and those with moderate to high-risk tolerance. Such investors should be comfortable with the potential short-term market fluctuations and  fluctuations in the value of their investments.

When considering cash funds, bond funds, and equity funds, it is essential to acknowledge that each fund entails distinct levels of risk and profit potential.

Cash funds exhibit the lowest risk, while bond funds carry a moderate level of risk, and equity funds present the highest risk among the three options.

In terms of profit potential, cash funds generally offer lower potential returns compared to bond and equity funds. Bond funds provide an opportunity for moderate returns, and equity funds possess the potential for higher long-term returns as they are designed to capitalize on stock market growth and benefit from capital appreciation over time.

Open funds

An open fund, also known as an open-end fund, is a type of investment fund that allows investors to buy and sell units at any time.It is open to new investors, and the number of units available is not limited. The fund continuously issues and redeems units based on investors demand. The net asset value (NAV) of the fund is calculated on daily basis using the total value of its underlying assets. Open funds typically invest in a diversified portfolio of securities such as stocks, bonds or other financial instruments. They offer investors flexibility and liquidity, as they can enter or exit the fund whenever they choose, without any applicable fees or redemption restrictions.

In addition, open investment funds provide several advantages, including diversification across different asset classes, professional management by experienced fund managers and the ability to invest with relatively small amounts of capital. They provide individual investors with access to a wide range of investment opportunities that may be challenging to access independently.

Closed investment funds

A closed fund, also known as a closed-end fund is a type of fund structured as joint-stock company,that has a fixed number of shares available for purchase. Unlike open funds, which allow investors to buy and sell units at any time, closed funds have a limited number of shares that are typically issued through an initial public offering. Once the initial shares are sold to the investors, the fund is closed to new investors, and the shares can only be traded on secondary markets, such as stock exchanges.

Similar to open-end funds, closed funds are managed by professional fund managers and invest in a portfolio of securities. However, their shares may be traded at a premium or discount to the net asset value (NAV) of the fund due to market demand and investor sentiment.

Investing in closed funds presents investors with the opportunity to access a professionally managed portfolio of securities, potentially benefiting from capital appreciation and dividend income. Closed funds can serve as a means to diversify an investment portfolio and may be suitable for investors seeking long-term investment prospects with the potential for income and growth.

Are investment funds secure investment options?

We acknowledge that you may have previously explored investment opportunities and understandably, encountered due to uncertainties.Rest assured!

Investment funds are widely acknowledged as secure and compelling investment options for several reasons.

First and foremost, they adhere to stringent regulations and undergo comprehensive supervision by regulatory authorities in their respective operating countries, ensuring  robust protection for investors.

The assets of Investment funds are securely held in separate accounts, overseen and managed by independent financial institutions such as custodian banks or depository banks. These institutions are responsible for safeguarding investor’s assets and ensuring strict compliance with all relevant regulatory requirements.

By investing in a diverse range of securities, investment funds provide valuable diversification, effectively mitigating the risks associated with individual stock or bond investments.

Furthermore, professional fund managers with expertise in analyzing and selecting investments, manage these funds, reducing the likelihood of poor investment decisions.    Lastly, investment funds provide liquidity, enabling investors to conveniently buy or sell their units at net asset value (NAV) on any business day, granting them flexibility and access to their invested capital.

Collectively, these factors establish investment funds as reputable and secure investment alternatives within the financial market.

Frequently asked questions

What defines an investment fund?

An investment fund represents the consolidation of capital from numerous investors, aimed at creating a diversified portfolio of assets, such as stocks, bonds, real estate and other securities. The fund procures funds from investors through either a public solicitation or a private offering. Competent fund managers employed by the Fund Management company, manage the day-to-day operations related to the investment funds and make investment decisions on behalf of investors,ensuring alignment with their preferences, goals and risk tolerance, as well as the fund’s investment objectives and strategy.

Is there a potential for capital losses within the fund?

The widely accepted understanding is that the value of stocks, bonds and deposits is subject to fluctuations over time. While certain investments offer growth potential, others may experience declines due to their sensitivity to various factors, including market conditions, economic indicators and other variables. Importantly, it is crucial to note that such declines in value do not equate to a complete loss of the investments, rather they signify a temporary decrease in the value of the owned securities over a specific period. While every investment inherently carries its risk, forming an integral part of any investment strategy, comprehending and effectively managing the risk associated with security price volatility is of utmost importance. Therefore, highlighting the exceptionally low probability of incurring losses in a well-diversified, valuable and professionally managed portfolio of stocks, bonds and deposits becomes significantly relevant.

It is possible for an individual to invest in multiple funds?


What kind of rights are conferred upon the unit holders in an investment fund?

Unit holders in an investment fund have certain rights that vary based on the fund’s terms, conditions, and regulatory framework. Common rights include:

  • Ownership: Unit holders have a beneficial interest in the fund’s assets, with each unit representing a proportional share.
  • Information and reporting: Unit holders receive regular reports on the fund’s performance, holdings, financial status and relevant updates.
  • Transparency and disclosure: Funds provide clear and accurate information about investment objectives, strategies, risks, fees and expenses.
  • Profit participation: Unit holders are entitled to a share in fund’s profits, such as dividends, interest payments or capital gains.
  • Redemption rights: Unt holders can redeem or sell their units at the prevailing net asset value (NAV) or a specified redemption price.
  • Claim on liquidation assets: Unit holders have the right to claim a share of the fund’s liquidation assets.

Specific rights may vary depending on the fund type and applicable laws and regulations in the jurisdiction.

In which investment avenues are the assets of the investment funds allocated?

The fund distributes its holdings across various markets, securities or financial instruments. Understanding the specific investment destinations provides investors with valuable insights into the portfolio’s diversification and risk profile.

Each investment fund follows unique investment policy outlined in its prospectus, which provides a comprehensive list of permissible financial instruments for allocating the fund’s assets.

What is a fund management company?

A fund management company is a specialized financial institution responsible for managing investment funds on behalf of investors. It takes charge of daily operations, investment decision-making, and ensures alignment with investors investment objectives and strategies. Highly skilled professionals – fund managers and analysts, diligently analyze market trends,select suitable investments, and actively manage portfolios to optimize returns and mitigate risks.These companies offer a diverse range of investment funds tailored to suit varying risk profiles and investor preferences.

In North Macedonia:
The Fund Management Company is a reputable joint-stock company headquartered in North Macedonia. It has obtained a license from the Securities and Exchange Commission to establish and manage investment funds. The company is dedicated to managing the funds assets effectively and efficiently, aligning with the prescribed investment policy outlined in the comprehensive Prospectus of the funds.

Who is responsible for safeguarding the capital of the investment fund?

Investment fund assets are held and managed by custodians, typically financial institutions known as custodian banks or depository banks. These custodians are responsible for safeguarding the assets and ensuring compliance with regulatory requirements. They handle essential administrative tasks related to the fund’s investments, including record-keeping, trade settlement and the safekeeping of securities. Custodians play a crucial role in maintaining the integrity and security of the fund’s assets, as well as promoting transparency, accountability and proper management of the fund’s holdings.

Furthermore, the accounts of investment funds are separate from the accounts of the fund management company, ensuring the protection of investor’s assets and maintaining the appropriate segregation of funds.

What do the units/stakes in investment funds signify?

The units or stakes in an investment fund represent ownership or participation in the fund. When investors purchase units, they essentially buy a portion of the fund’s assets. The number of units or stakes held by investors determines their proportional ownership in the fund. The value of these units is typically based on the net asset value (NAV) of the fund, which is calculated by dividing the total value of the fund’s assets by the total number of units outstanding. As the fund’s assets grow or decline in value, the value of the units held by investors also changes accordingly. Investors can buy or sell units in the investment fund, allowing them to enter or exit their investment position.

Is it possible to make investments on behalf of a minor?


Who controls and supervises the operations of the fund management company?

Government regulatory bodies play a paramount and indispensable role in diligently supervising and regulating fund management companies, ensuring their strict adherence to securities laws and protecting the interests of investors. In the United States, the Securities and Exchange Commission (SEC) diligently assumes this responsibility, while in Europe the European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (FCA) in the United Kingdom, conscientiously handle the regulation and supervision of fund management companies.Throughout Asia, the regulation and supervision of these companies vary across countries, with some being diligently overseen by specific financial regulatory authorities, while other fall under the jurisdiction of central banks or other relevant entities. Forinstance,the Monetary Authority of Singapore (MAS) is dedicated to supervising fund management companies, while the China Securities Regulatory Commission (CSRC) stives to uphold financial stability and protect investors interests in China.
The primary responsibility of these regulatory bodies is to ensure absolute compliance with all pertinent laws, regulations and industry standards, by vigilantly and continuously monitoring the day-to-day operations of fund management companies, ensuring meticulous adherence to legal frameworks and thereby safeguarding the investor’s interests.

In North Macedonia, the Securities and Exchange Commission assumes a pivotal role in overseeing the capital markets and all entities involved, including fund management companies and investment funds. Their responsibilities encompass granting operational licenses and providing thorough supervision over their operations and activities. This diligent supervision is characterized by their commitment to continuously monitor mandatory reports and documents, thereby ensuring stringent compliance with regulations and industry standards. Moreover, the Securities and Exchange Commission conducts thorough on-site inspections to meticulously and directly assess the regular operations of these entities.

In addition to the government regulatory bodies’ role, other key entities involved in supervising fund management companies include Custodian banks, responsible for holding and safeguarding the fund’s assets separately from the fund management company and auditors, independent firms that review the fund management company’s financial records and activities to ensure accuracy and transparency. The Board of directors plays a crucial role in the overall governance and strategic decision-making of the fund management company, while the management team oversees day-to-day operations and implements strategies. An investment committee is often responsible for making investment decisions and setting strategies for the funds, and compliance departments ensure adherence to applicable laws, regulations and internal policies. The specific oversight and supervisory structure may vary depending on the country and the type of fund management company.