Investeerimisühikute

Investeerimisühikud, often translated as investment units, are a common financial instrument in Estonia and other Baltic countries. They represent a share in a larger investment fund managed by a professional asset manager. When an individual invests in an investeerimisühik, they are essentially pooling their money with other investors. This pooled capital is then used by the fund manager to purchase a diversified portfolio of assets, which can include stocks, bonds, real estate, and other securities.

The primary benefit of investeerimisühikud is diversification. By investing in a fund, individuals gain exposure to a wide range of assets, which can help reduce the overall risk compared to investing in individual securities. The fund manager is responsible for selecting and managing these assets, aiming to achieve specific investment objectives, such as capital growth or income generation. Investors can typically buy and sell investeerimisühikud through banks, brokerage firms, or directly from the fund management company. The value of an investeerimisühik fluctuates based on the performance of the underlying assets in the fund. Fees associated with these units typically include management fees and sometimes performance fees, which are deducted from the fund's assets.