Postponing money for retirement in the third pillar of the pension system makes it possible to avoid capital gains tax and accumulate a considerable amount of money if the investments are well thought out. One of the saving options are investment funds offered by investment fund companies.
Investment funds are, alongside bank deposits, life insurance, voluntary pension funds and brokerage accounts, tools for saving for retirement. They are available within Individual Pension Accounts IKE and Individual Pension Security Accounts IKZE.
Investment funds - who and how manages the funds' resources?
Funds are managed by investment fund companies. Specialists with a licence from the Polish Financial Supervision Authority working in these bodies advise how to invest money in cash funds, shares and bonds. An investment fund company, such as Union Investment, can offer clients ready-made saving options or help them to create individual programs.
Financiers value return rates in open and closed-end funds, construct savings plans and provide reliable advice on investing. Therefore, it is particularly worth choosing those investment fund companies that can boast many years of experience and high efficiency, as evidenced for example by the industry awards won many times.
Types of investment funds and products recommended for future pensioners
Within IKE or IKZE, the most recommended investment funds are those in which long-term investments are made. The safest choice is bond funds. The funds in them are invested in treasury, municipal and commercial bonds. Their value may decrease if interest rates (increase) or economic prospects change. In the case of foreign funds, exchange rates are also important.
Investment fund companies usually also offer other, more risky options for saving money. Forecasted profits may be higher, but with them the risk of investment increases. If none of the ready-made programs is suitable, you can create your own portfolio by selecting individual sub-funds. This is possible in the so-called umbrella funds.