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Investment funds

Enter the world of investment funds and get a potentially higher yield than standard savings.

Investment funds

Investment funds are managed by the Investment Fund Management Company (AMCo). Establishing a AMCo requires approval from the regulator (the Securities Commission of the Federation of BiH), which continues to oversee its operations even after the AMCo begins operating. The establishment of each investment fund also requires regulatory approval, ensuring that every new fund fully meets all legal and regulatory requirements and continues to comply with them throughout its existence.

Investment funds can be open or closed. The term 'open' in the name indicates that an investor can withdraw their investment from the fund at any time and that there is no maximum fund size.

Investment funds collect financial resources from interested investors based on the fund's main document – the Fund Prospectus, which describes all the characteristics of the fund (where the investments will be made, what the objectives are, what the limitations are, what the fees are, what the risks are, etc.). It is advisable to study the Prospectus and the Fund's Statute before starting to invest and to familiarize yourself with all the details.

The collected funds, i.e., the fund's assets, are invested in various financial instruments (bonds, stocks, treasury bills, etc.), in accordance with the Fund's investment strategy, which is defined by the Prospectus and the Statute.

Types of Investment Funds

Investment funds are characterized by different investment strategies, different financial instruments in which the fund invests, different recommended investment periods, geographical diversification… but generally, funds can be divided into the following main groups:

  • Money Market Funds – The assets of money market funds are invested in instruments with the highest credit rating (treasury bills, bonds, deposits). They are characterized by high investment security, low price fluctuations, and typically short-term investment horizons.
  • Bond Funds – The assets of bond funds are invested in bonds of various issuers (states, companies, municipalities, cantons). They are characterized by higher price fluctuations than money market funds, but lower compared to funds exposed to the equity market. Investments in bond funds are typically based on medium-term horizons.
  • Mixed Funds – The assets of mixed funds are invested in various financial instruments, usually a combination of bonds and stocks.
  • Equity Funds – The assets of equity funds are invested in shares of various companies and are characterized by higher price fluctuations compared to money market and bond funds. Investments in equity funds are typically long-term.
  • Other Funds – A special category of funds due to different investment strategies compared to the four main categories, e.g., target-date funds, funds that target a specific yield or maximum price volatility (so‑called target volatility funds).
Risks When Investing in Funds

Although the significance of each risk depends on the fund’s strategy, it is important to become familiar with the potential risks characteristic of each selected fund before starting to invest. The most common risks to which funds are exposed include:

  • Market Risk – the risk of price changes in financial instruments in which the fund’s assets are invested. This risk is most significant for equity funds.
  • Credit Risk – the risk related to the issuer of financial instruments in which the fund's assets are invested. This risk is most significant for money market and bond funds.
  • Currency Risk – changes in the exchange rate between two currencies. This risk is present in funds whose assets are invested in financial instruments denominated in different currencies (e.g., U.S. stocks).
  • Interest Rate Risk – the risk of changes in interest rates. This risk is especially significant for funds whose assets are invested in interest-bearing financial instruments (bills, bonds).
  • Liquidity Risk – the risk of being unable to sell financial instruments owned by the fund. This risk is most significant for funds investing in less developed markets or in crisis situations when market trading volume decreases (e.g., financial crisis, pandemic, natural disasters).
  • Regulatory Risk – the risk of changes in legal or tax regulations. Depending on the impact of these changes, this risk affects all types of funds equally, for example, through a decrease or increase in capital gains tax.

The Prospectus and Statute of each fund contain detailed explanations of risks characteristic of the selected fund. Therefore, it is advisable to read the Prospectus and Statute before investing.

Additionally, attention should be paid to the unique risk indicator of each fund, which uses a scale from 1 to 7 to show the level of risk and potential performance. For example, funds labeled 1 indicate lower risk and potentially lower performance (returns), while funds labeled 7 indicate higher risk and potentially higher performance. The fund’s risk indicator can be found in the Monthly Report for Clients (SRRI).

Costs

Investing in investment funds involves various direct and indirect costs that should be understood prior to investing. The most common and potentially most significant costs are:

  • Entry Fee – calculated as a percentage of the invested amount.
  • Management Fee – included in the unit price and not paid directly. Instead, the total fund assets are reduced daily by the amount of the fee.
  • Exit Fee – charged when redeeming fund units. The amount and calculation of the exit fee depend on the duration of the investment.

All fund costs are listed in the Prospectus and Statute of the fund.

Fund Documents

At first glance, fund documentation may appear complex and extensive; however, it is recommended to review the following documents:

  • Prospectus, Statute and Fund Rules – contain all information regarding the fund's investment objective, investment strategy, investment limitations, fees, risks, etc.
  • Monthly Fund Report – contains graphical representation of unit price performance, achieved returns, fund assets, and investment structure.
  • Annual and Semi-Annual Financial Reports – provide a detailed overview of the financial position of the fund.

Link: https://www.unicreditinvest.ba/Portal/dokumenti/ba/

Advantages of Investing in Investment Funds

Investment in investment funds is widely used and accepted by individual clients because it offers:

  • Access to money and capital markets even with smaller amounts. By purchasing fund units, investment diversification across various issuers is automatically achieved, which reduces risk compared to investing in individual instruments.
  • Professional asset management by fund managers who monitor market movements daily and make buy/sell decisions in line with the investment strategy.
  • Liquidity, as the fund management company is obligated at all times to enable investors to redeem their fund units.

Investing through an investment plan allows you to achieve long-term goals by making periodic payments of a portion of your funds. By simply selecting one or more investment funds, you can manage your finances flexibly. The investment plan facilitates the decision of when to start investing, enables entry into the world of investment funds without significant financial burden or initial capital, and supports the investor’s desire/need for consistency.

Create healthy saving–investment habits and, starting from only 30.00 KM per month, achieve your long-term financial goals with investment plans for onemarkets investment funds managed by UniCredit Invest BH d.o.o.

What does an Investment Plan achieve?

  • Positive habits: By setting up an investment plan (standing order), you develop a habit of regular investing, regardless of conditions in money and capital markets.
  • Rational investment decision: Emotions can influence financial decisions. With regular investing, you buy units during both market increases and decreases. Although this strategy does not guarantee profit or protection from loss, it enables long-term asset accumulation and avoids trying to time the market.
  • Average purchase price: When the price is lower, you purchase more fund units; when it is higher, fewer units. This makes the average purchase price lower than the fund’s highest price.
  • Liquidity: You may request to sell units at any time, guaranteed by the Prospectus and relevant laws.
  • Flexibility: At any time, you may increase or decrease your contributions or stop investing.
  • Automatic reinvestment: All returns (interest, coupons, dividends) are reinvested automatically.
  • Transparency: You always have insight into the status of your investment.

Which fund to choose?

  • Open-ended investment funds differ in structure, objectives, fees, and recommended investment periods. Before investing, it is important to understand the risks characteristic of each fund.

How much to invest?

  • You determine the amount independently, depending on your goals and needs. The minimum amount is 30.00 KM per month.

In most cases, the reason or goal for starting an Investment Plan also defines the investment horizon. For example, if you are setting money aside for a more comfortable retirement, you likely have ten or more years ahead of you; if you are saving for your children’s university education, then the investment horizon is around ten years; if you dream of a big trip, the horizon is 5–10 years; and if you don’t have a specific goal but are aware that it is necessary to set aside funds each month, then simply let time work in your favor and reward your decision to begin an Investment Plan.

What to pay attention to?

  • By applying the cost-averaging method, you reduce the impact of price volatility and thus mitigate the risk of purchasing units when the prices are highest.

How and where to start?

  • You can set up an investment plan free of charge at any UniCredit Bank branch on the territory of the Federation of Bosnia and Herzegovina.

Where to track investment value?

→ Multiply the number of units you own by the unit price.

→ The number of units changes only if you buy or sell.

 

They primarily invest in deposits and money market instruments, with no exposure to equity markets.

onemarkets EuroCash Fund OIF

The Fund aims to achieve short-term asset growth by generating income from interest-bearing assets and gains from price differences in financial instruments, investing in money and bond markets, while ensuring high liquidity of the Fund’s assets and maximum stability of the Fund’s unit price. Given its investment objective, the Fund is categorized as a money market fund.

Learn more on link: https://unicreditinvest.ba/Portal/onemarkets-eurocash-fund-oif/ba/

They primarily invest in equities to achieve higher long‑term returns. The longer the investment period, the less important short‑term price fluctuations become.

onemarkets US Equity Fund OIF:

The Fund aims to achieve medium- to long-term asset growth through gains from price differences in financial instruments and income from dividends. It primarily invests in U.S. equity markets, in shares of issuers from the United States, as well as issuers operating in or generating most of their revenues in the U.S., and to a lesser extent in money markets.

Learn more on link: https://www.unicreditinvest.ba/Portal/onemarkets-us-equity-fund-oif/ba/

These funds work to preserve the value of assets through a defined investment strategy.

onemarkets Capital Protected 2027 EUR Fund OIF:

Fund aims to preserve the initial value of the assets and achieve a targeted increase of 6.05% (target unit price 207.42 BAM or 106.05 EUR; 2.00% average annual return) over the period from inception to maturity, by generating income from interest‑bearing assets, primarily investing in debt markets without a legally binding guarantee.                                                                            

Learn more on link: https://www.unicreditinvest.ba/Portal/onemarkets-capital-protected-2027-eur-fund-oif/ba/

onemarkets Capital Protected 2026 EUR Fund OIF:

Fund aims to preserve the initial value of the assets and achieve a targeted increase of 2.80% (target unit price 201.06 BAM or 102.80 EUR; 1.40% average annual return) over the period from inception to maturity, by generating income from interest‑bearing assets, primarily investing in debt markets without a legally binding guarantee.

Learn more on link: https://unicreditinvest.ba/Portal/onemarkets-capital-protected-2026-eur-fund-oif/ba/

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