The National Privatization Fund”, investment fund launched its operation officially on October 5. This is Mongolia’s first mutual investment fund. Specifically, the National Privatization Fund will aim to raise funds from the public, make investment to foreign and domestic stock markets and distribute profit to its investors.
Executive Director of the Mongolian Stock Exchange Kh.Altai noted at the opening of the NPF that Mongolia’s stock market has offered only two types of products, namely stock and bond in the past 30 years. While, this is the first time in the history of the stock market that an investment fund offers its unit rights to the public.
“As the citizens making investment to the investment fund, they will have number of advantages such as reducing risk and being provided with professional management. I hope that many new investment funds will be founded following the fund that is offering its unit rights to public and it would develop and activate stock market.”
Investors are able to purchase unit rights of the fund at the Mongolian Stock Exchange through their security companies. The fund has issued 50 million pieces of unit rights and is offering its 95 percent or 47 million and 500 thousand pieces to the public at MNT 100 per unit right.
The fund aims to raise MNT 4 billion and 750 million from the market and purchase of unit right will close on October 15.