The boom of the Bulgarian Stock Exchange in the country makes the mutual investment funds more and more popular.
This type of funds give small investors the opportunity to take advantage of the stock exchange even by investing small amounts since they have the opportunity to cash in at any moment by selling their shares in the mutual funds.
The rise in the stock exchanges in Bulgaria and around the world has proved that investment in funds turns out to be much more profitable than bank deposits.
Investment in funds also carries a significantly less amount of risk than direct investment for which certain financial competence is required.
Although their popularity is increasing, mutual funds in Bulgaria are still lagging behind in terms of development when compared to those in Western Europe and the USA where 50% of population owns shares in public companies.
In Bulgaria the figures are much smaller and people here still prefer to put their savings in the bank.
The table below shows the most profitable mutual funds in the country ranked in order of their performance during the past year. The data is provided by the Bulgarian Association of asset managing companies.
|Mutual Fund||Return||Date of establishment|
|Past 12 months||Past 6 months||Year to date||Cumulative return (anulized)|
|1000 Euro||1000 Euro||Not anulized|
|2||Status New Shares||1785.23||1462.15||1392.17||1756.22||22/05/06|
|3||Standard Investment High Yeld Fund||1761.49||1225.49||1186.25||1637.55||3/1/06|
|4||Bebchmark Fund – 2||1733.00||1294.50||1268.00||1860.80||3/1/06|
|8||Standard Investment Balanced Fund||1564.84||1254.62||1213.16||1328.66||3/1/06|
|9||Elana High Yeld Fund||1550.60||1288.40||1248.60||1306.30||6/20/05|
|11||KD Shares Bulgaria||1489.10||1194.40||1158.90||1425.80||5/4/06|
|13||Benchmark Fund – 1||1421.30||1301.20||1152.50||1318.90||12/14/05|
|14||Elana Balanced Fund||1410.80||1247.90||1216.30||1284.30||12/7/05|
|15||Elana Balanced Dollar Fund||1398.60||1260.60||1230.80||1314.20||3/6/06|
|18||UBB Balanced Fund||1298.48||1201.15||1170.92||1182.84||1/31/05|
As you can see an investment worth 1000 leva in DF Capman Max, currently the most profitable investment fund, would have turned into 2,619 leva in a year which is not bad at all.
The same investment in bank deposit would have brought you 1,060 leva a year ago.
Since its establishment, Capman Fund has been the best fund in Bulgaria and an investment of 1,000 leva in it would have increased with 1,016 leva each year.
We have to take into account that the fund is still relatively young – it was created in the beginning of last year.
Investors should bear in mind that no one can be sure whether next year will see the same returns.
The fund which achieved the best returns over the past six months is Status New Shares where an invesment worth 1,000 leva would have turned into 1,460 leva.
The fund is also the best in terms of performance since the beginning of the year – an invesment of 1,000 leva in the beginning of January would amount to1,390 at the moment.