Mutual Investment Funds (MIFs): Classifications, Securities, Regulation & Global Comparison

What is a Mutual Investment Fund?

A mutual investment fund is a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, and other financial assets. They provide diversification, professional management, and are accessible to retail and institutional investors alike.

Classifications of MIFs

Type	Description
Open-End Funds	Units can be bought and redeemed at any time at NAV.
Closed-End Funds	Fixed capital; units traded on exchanges like stocks.
Exchange-Traded Funds (ETFs)	Traded on exchanges with fluctuating market prices.
Index Funds	Track a specific market index (e.g., S&P 500).
Actively Managed Funds	Managed by professionals aiming to outperform the market.
Bond Funds	Invest in various bonds including corporate and government.
Equity Funds	Primarily invest in stocks.
Mixed/Hybrid Funds	Blend of equities, bonds, and other asset classes.

Securities Related to MIFs

Units or Shares: Ownership in the fund.
Underlying Assets: Stocks, bonds, derivatives, money market instruments.
NAV (Net Asset Value): Price per unit/share calculated from the portfolio value.

Regulation and Governance

Element	Description
Fund Manager	Responsible for asset allocation and performance.
Custodian	Holds fund assets securely.
Regulatory Body	Oversees legal compliance and investor protection.
Disclosure Requirements	Includes NAV updates, portfolio holdings, and fund prospectus.

Comparison of MIFs by Country

Criteria	Russia	Ukraine	USA	Argentina	China
Regulator	Bank of Russia	NSSMC	SEC	CNV	CSRC
Common Types	OIF, UIF, ETFs	Corporate, venture, unit funds	Open-end, ETFs	Open-end, ETFs	Public/private, QDII
Legal Basis	Federal Law 156-FZ	Law on Collective Investment	1940 Investment Act	Law 24.083	Securities Investment Fund Law
Market Maturity	Developing	Emerging	Developed	Emerging	Rapidly developing
Foreign Access	Limited	Limited	Full	Partially restricted	Via QFII or Stock Connect
NAV Disclosure	Weekly	Quarterly	Daily	Weekly	Daily
Taxation	13% capital gains	18% + levy	Varies	5–15%	Taxed unless exempt

Case Study: National Flagship Funds Comparison

Feature	Sberbank OIF (Russia)	Vanguard 500 Index Fund (USA)	CSI 300 Index Fund (China)	FIMA Capital Plus (Argentina)
Fund Type	Balanced OIF	Index fund	Index ETF	Open-end capital preservation
Main Assets	Russian equities and bonds	S&P 500 stocks	CSI 300 stocks	Short-term bonds
Manager	Sberbank AM	Vanguard	E Fund/Harvest	Banco Galicia
Currency	RUB	USD	CNY	ARS
Expense Ratio	~1.5%	0.04%	0.5%–1%	~2%–3%
Minimum Investment	₽1000	$3000	¥100	ARS 1000
Performance (5 yrs)	~+30% RUB	~+80% USD	~+35% CNY	~+25% ARS nominal
Risk Profile	Medium-high	Medium	Medium-high	Low (high inflation risk)
Foreign Access	Restricted	Fully open	Limited (Stock Connect)	Generally closed

Conclusion: While mutual funds serve a similar function globally, their structure, regulation, accessibility, and return profiles vary significantly. US funds offer the most efficient and transparent investment options, while emerging markets like Russia and Argentina offer higher risk and limited access for foreign investors.