Types of Investment Funds in Russia

As a general rule, the investment market in Russia is comprised of two main categories of funds: retail funds and hedge funds. These types of investment vehicles are generally available for foreign investors, but there are also several restrictions prescribed under the regulations of the Anti-Monopoly Body and the Bank of Russia. These restrictions are applicable to both local and foreign investors and our team of company formation representatives in Russia can offer more details on such provisions. Still, it is important to know that the restrictions applicable to foreign investors have been reduced by the local authorities. 

 

When investing in Russia, investors can opt for the retail funds market, but it is important to know that this market is less developed compared to other states with a similar economy, but the regulations applicable under the Russian legislation are very solid. 

 

Retail funds are usually addressed to investors who do not have the quality of high net worth individuals. They also have a lower value of the investments that can be performed by the investors and there are more restrictions applicable than in the case of hedge funds. 

 

These types of funds are regulated under the Federal Law on Investment Funds No. 156 – FZ and our team of company formation consultants in Russia can offer in-depth information on the provisions of this law. 

 

In Russia, investors can set up one of the following retails funds: 

 

• open-ended funds;

• exchange-traded funds;

• interval funds;

• closed-ended funds. 

 

The Russian hedge funds are regulated under the above mentioned law and they can be set up as one of the following: 

 

• interval funds;

• closed-ended funds. 

 

The difference between these types of funds in given by the rights the shareholders have in terms of issuing and redeeming shares. In the situation of an open-ended fund, the investors have no restrictions in this sense, while in the case of a closed-ended fund, the investors are not granted with this right. 

 

Businessmen interested in receiving more details on the types of investment funds available in this country are invited to contact our company formation agents in Russia.