Purchase of fund units
Where and how to purchase ERSTE Investment fund units?
Investment fund units can be purchased in all Erste Bank d.d. Rijeka branch offices. Also they can be purchased online. Your advisor would be glad to help you choose a proper fund in line with your goals and instruct you how to purchase units online.
What type of risk could I expect investing in funds?
Level of risk in a certain investment fund depends on the respective fund. Usually, the lowest risk is in a monetary fund, than in a bond fund which is less risky than an equity fund. Therefore, the long-term profit is more likely to gain in equity funds.
Types of funds
Why are there only few different funds?
Erste INVEST has developed types of funds in accordance with the Croatian market development and our clients’ demands and we believe there is quite a diversity of funds.
Is there any guarantee of money return for my units in fund?
According to the Croatian Investment Funds Law, Investments Fund Management Company is obliged to take over (purchase) issued units at the current price. Furthermore, you can realise your units in any moment and cash them at your bank account. The cashed amount will depend on the fund development and the invested capital. Due to the risk of exchange fluctuation of securities, fund assets and units can lose value. Therefore, each client should choose a suitable fund in accordance with its risk profile.
Duration of investment
What is an investment period in a certain fund?
You can cash your units any time but there is a recommended time for duration of investment. It depends on a type of the fund, i.e. for more risk funds you should keep your investments longer. It is recommended to invest in monetary funds for the period from 1 to 2 years. The investment period can be even shorter (especially for companies that can keep their capital in fund for only few weeks – i.e. “cashmanagment). In Austria, recommended investment period in bonds is 3 – 5 years. With respect to market conditions in Croatia (not developed yet), the recommended investment period is 2 – 5 years. The recommended investment period for mixed funds is 5 – 7 years and for equity funds the recommended period is 10 years.
Savings within fund
Is it recommended to invest in funds by insignificant sum of money?
Yes, you could regularly save by depositing small sums you will determine, but should not be smaller than the minimum investment amounts (Money HRK 2.000, Bond and International HRK 400). You may purchase the whole units or only parts of units (with four digits), depending on the net asset value (NAV). This model gurantees the total payment investments, without delay and without reserves.
The regular Erste fund savings may be regulated by money order in Erste Bank.
Is a fund manager entitled to spend my money at his own will?
Fund manager is entitled to invest your money pursuant to the Fund's Prospectus that was approved by the Croatian Financial Services Supervisory Agency (hereinafter: HANFA), and the followed provisions are monitored by the Commission that receives the report by the management company every day.
Could fund manager disappear with my money?
In order to avoid that, the following security measures have been implemented. Your money has been managed by the Fund Management Company (including a fund manager). The accompanying securities have been deposited in the bank. In that way they can manage your assets without having access to money. In other words, the fund account is a special account approved by the Croatian National Bank and has no any obligations toward the depository bank or insolvency problems.
Is it possible to lose money investing in fund units?
It depends on securities of a respectable fund. In case of huge price alterations, the fund asset is decreased and shares automatically lose their value. You may prefer investing in a fund with low price alterations. Therefore, it is very important to choose a proper fund in line with your goals and suitable risks. Your investment will be more profitable if invest it for a longer period.
Where could I find information on my share investment in fund ?
Information on funds may be found at the stock exchange on a daily basis, in "Vjesnik" every Monday, in business newspapers (eg. Dnevnik), at the web-site of Erste INVEST under www.erste-invest.hr and Erste Bank www.esb.hr as well as Erste Bank branch offices.
Who do I have to contact about investment fund information?
You can contact an advisor in Erste Bank who will be glad to help. You can send an e-mail to the address firstname.lastname@example.org and we will respond to any of your question at our best possible convenience.
Selling fund units
What is important to know while selling units?
According to the Croatian Law on Investment Funds, the Investment Fund Management Company has to take over (redeem) the issued shares per current price. All fund shares Erste Invest has managed may be sold in any Erste Bank branch office without exit fee.
Who will redeem my fund unit in case I want to sell it?
Fund Management Company is obliged to redeem all the issued documents from the clients. Each investor may return their shares at redemption price (with no extra fees).
What are the legal obligations of an investment fund?
In the Republic of Croatia only the fund management companies can manage the funds, i.e. commercial companies in accordance with the Law on commercial companies (NN 111/93, 18/03) , Law on securities trading (NN 84/02) and Law on investment funds (NN 107/95, 12/96, and 114/01). They are monitored and are obliged to be reviewed by all legal entities as well as the Croatian Security Commission Supervising Agency in accordance with the securities law stipulations and Investment fund laws.
Is there any clarification of financial official terms?
The clarification of the most important terms is at the left hand side of our web-site under: Investment Banking Glossary.
Why Erste INVEST does not advise on certain purchasing?
Each purchase advice should be tailored to client's demands and goals. Since we do not know our clients in person, we could not provide them with any specific recommendations. There are fund descriptions and detailed recommendations of each fund and we are certain that each client could recognize themselves in one of those descriptions.
Net asset value
What is the difference between the net asset value (NAV), emission price and the redemption price?
Net asset value
Net asset value (NAV) is the value of fund share available through the depository bank on a daily basis: out of the total amount of all securities, monetary amounts, assets, liabilities and other rights of the fund assets – the inventory value is to be divided by the number of issued shares.
The entire fund asset is calculated as per valid exchange rates and for bond values and deposits the interests are calculated separately. The calculated value is the basis for the selling and redeeming price. With help of accurate calculation we could ensure that neither client's yield is lowest and that no individual sale highest, which could damage other owners of fund shares.
Emission price (selling price) is the price of selling shares to the client. The emission price is calculated with billing value and expenditures (costs of issuing shares) in accordance with the Fund prospectus.
It is the price of share cash flow to the giro account of the fund and the price of issuing share documents costs.
Share redemption price (redeemed) by clients, (purchasing price) is the price paid off by return of shares to the fund. Net asset value of Erste INVEST is the same as redeem price. There is no exit fee for redeeming shares (exit from fund).
It is the price the Fund redeems shares from the share owners.