
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.
Retail funds in Russia
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.
In Russia, investors can set up one of the following retails funds:
• open-ended funds;
• exchange-traded funds;
• interval funds;
• closed-ended funds.
Hedge funds in Russia
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.