Fund Profile
The mutual fund ‘EF Rapid’ is a balanced type one. It invests predominantly in securities which are admitted to trading or traded on a regulated market in Bulgaria, including shares, debt securities and fixed income instruments. The main objectives of the mutual fund consist in an increase in the value of the investments of the holders of shares through realisation of the maximum possible income while assuming a moderate risk and ensuring the liquidity of the investments of the holders of shares.Investment Structure
The investment strategy of the mutual fund provides for the realization of capital profits from securities, income from dividends/share securities, as well as for current income from debt securities and other financial instruments. For achieving the investment objectives, a strategy of active management of the portfolio of securities, financial assets and pecuniary resources is implemented. It is provided that, under normal circumstances, about 60-70% of the portfolio of the Fund will consist of shares and tradable rights aimed at acquiring shares of new emissions upon capital increase of the respective public companies. The portion of debt securities, including mortgage bonds, other corporate bonds and municipal bonds, and government securities, as well as money market instruments shall be up to 30-40% of the portfolio. The specific structure of the assets will depend on the current market conditions and will be dynamic, remaining within the above restrictions.Return and Risk Management
Growth is ensured by investing primarily in fixed-income instruments and debt securities. To increase returns, a portion of the assets are invested in high-yield securities. Risk management is carried out through diversification techniques and the mutual combination of assets. Among the main objectives of the Fund is also ensuring liquidity - both of its own investments and of investments in the Fund's units.
In the event of a prolonged market downturn, investments will be withdrawn from the equity group and directed towards low-risk assets. This will be done to protect investors holdings.
Potential Investors in the Fund
The main group of investors who are the targets of the activity of the Fund are the investors having an income exceeding the average one for the country, good investment culture and moderate risk bearing capacity.The investment product of ‘ЕF Rapid’ is targeted at persons (citizens, companies, institutions) which:
- are ready to assume moderate investment risk;
- are willing to achieve quick and secured liquidity, without this affecting the investment income that has already been achieved;
- are ready to invest pecuniary resources in the long run;
- are seeking diversification of the risk of their own portfolio;
- are willing to have their money managed by financial market professionals.