Bank funds mutual funds amount to competition

Banks Finansy04-05-2007 in the Russian market of collective investment but well-known mutual funds, there are so-called funds of bank management (OFBU). Thus, banks have two ways to create the fund: UK register of individual or mutual funds directly. Funds of bank management appeared on the market at about the same time with the PIFS, but the crisis of 1998 have not given it a financial instrument will develop into full force. Even when the stock market recovered from the losses and the banking sector began credible, OFBU still remained in the shadows. This had several reasons: lack of trust in banks, investment is low literacy, lack of readiness of private investors to invest money for a long time and the reluctance of banks to compete with themselves. But the main reason lies in the fact that if the development of mutual funds are actively engaged in the Federal Commission on Securities Market (now the Federal Service for Financial Markets), creating the infrastructure of Western-style, the promotion of bank funds was left to the mercy of the banks themselves. Thus, mutual funds were the subject of close attention and much interest from the FSC, while the bank funds were administered by the Central Bank, for which OFBU were a byproduct of the main banking business.