With CKB to most world markets – we present OTP Investment Funds

At a time when inflation is eroding the value of your savings, simply saving in a bank is no longer enough to protect your money. Interest rates are low, and the value of money is falling faster than your savings are growing. To ensure the long-term value of your capital, it is important to consider other options such as capital market investments.

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Photo: CKB
Photo: CKB
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

CKB, through OTP Group, has access to most world markets, so our clients, in addition to the domestic market, can trade on renowned stock exchanges, from the Frankfurt, Xetra or London Stock Exchange, to the New York and Nasdaq, and recently they have also had the opportunity to invest in OTP Investment Funds, a product that is new to our offer for our clients, but already very popular for investment and savings for clients in the region and beyond. The funds have been carefully designed in order to offer all potential clients the optimal solution for their needs, and to enable the best possible risk-return ratio on the investment, and our team of experts from OTP Bank has worked hard on creating the funds.

OTP funds offer the opportunity to have your money work for you, without the need to monitor the movements of individual securities on the market on a daily basis. Depending on your goals and risk tolerance, you can choose one of the three funds offered at the moment. Also, our team is working hard to introduce new investment opportunities to the market soon, in line with client interest.

OTP Investment Funds

OTP Multi-Asset funds are open-ended funds, which means that an order to buy or sell an investment unit can be placed on any business day. In both cases, the transaction execution day is the fourth day after the order is initiated. Each of the funds has its own recommended investment period, which is actually the time frame during which the investor will potentially achieve optimal results. This period can vary depending on the type of fund and its objectives, and usually ranges from several years to more than ten years. The funds that we have decided to present to clients in Montenegro are funds where the optimal return on investment is expected in the first 4 or 5 years of investment, however, this does not limit the investor to exit the investment at any time.

OTP Multi-Asset Conservative Fund of Funds

This fund is ideal for those who want stability in their investment. Most of the funds are invested in bonds, while a smaller portion goes into stocks and alternative investment strategies such as real estate. This means that this fund is less risky, and therefore offers a lower potential return. The recommended investment period is at least four years.

Fund unit value (EUR)

CKB
photo: CKB

OTP Multi-Asset Balanced Funds of Funds

If you want a balance between risk and return, this fund is a great choice. About half of the assets are invested in stocks, while the rest goes into bonds and other instruments. This fund offers greater growth potential compared to the Conservative Fund, but with moderate risk. The recommended investment period is also four years.

Fund unit value (EUR)

CKB
photo: CKB

OTP Multi-Asset Dynamic Fund of Funds

For investors who are willing to take on more risk in exchange for the possibility of higher returns, the Dynamic Fund is the right choice. The majority of the assets are invested in stocks on international markets, which means there is greater potential for growth, but also greater fluctuations in value. This fund is recommended for those who plan to invest for the long term and are prepared for larger changes in the value of their investment.

Fund unit value (EUR)

CKB
photo: CKB

The biggest advantages of the funds discussed are: diversification investments, because by purchasing one investment unit, the investor does not invest in one company or country, but in a large number of them, but also flexibility investments because the minimum amount is actually a little more than €1, i.e. the value of one investment unit. The client can always increase or decrease the number of investment units in the portfolio, so he is not limited by the term of investment in these instruments.

Representative example: OTP Multi-Asset Balanced Funds of Funds

In the case of a purchase made at the beginning of the year, more precisely on 12. 01. 2024, with an investment unit price of €1,09, for a €10.000 investment, the investor could purchase 9.174 investment units. The value of the portfolio of purchased investment units on 17.01.2025. 10.917,06 would amount to €XNUMX. In the case of selling investment units, the client would be charged a commission for exiting the investment in accordance with the list of conditions on the day of initiating the sale of part or the entire portfolio, while there would be no cost of holding securities or initial purchase costs.

This example shows how with smart investing, your money can grow even in a relatively short period of time.

For more information on the methods and conditions of investing in funds, as well as fund prospectuses and key investor information, please contact us at pbis@ckb.me.

Another investment fund that is increasingly attracting investor attention is the OTP CETOP UCITS ETF: An investment product with exceptional growth potential

Since the second quarter of 2024, investors have been introduced to the OTP CETOP UCITS ETF, an innovative fund that gathers stocks with the highest turnover and capitalization in seven countries of Central and Eastern Europe. This fund allows both domestic and foreign investors from Western Europe, the Far East and other parts of the world to invest in leading companies from one of the fastest growing regions in the world - even without knowing the specifics of local markets.

OTP CETOP UCITS ETF tracks the CETOP NTR index developed by the Budapest Stock Exchange (BSE), and includes the most traded stocks in Central and Eastern Europe. In addition to leading Hungarian companies, such as Mol, OTP and Richter, the fund also contains so-called blue chip stocks from the Czech Republic, Croatia, Poland, Romania, Slovakia and Slovenia.

For investors, this represents an opportunity to become part of one of the most dynamic economic regions, with significant growth potential. Often, foreign investors find it difficult to access these markets due to their size or geographical location, but OTP CETOP UCITS ETF can overcome those barriers by providing them with a simple and efficient way to invest.

OTP CETOP UCITS ETF allows investors to invest in the fund as if they were buying shares on the stock exchange. The fund is listed on the Budapest Stock Exchange with a nominal value of EUR 10, and its units can be bought and sold during business hours at current market prices. OTP banka will ensure the liquidity of the fund, so investors can be sure that they will always have the option to exit the investment.

The fund does not pay dividends, but uses the dividends received for further reinvestment, which enables long-term asset growth.

Since its launch in April 2024, OTP CETOP UCITS ETF has increased its net assets by a factor of 20, becoming the largest Hungarian ETF. The fund consists of up to 25 of the most active stocks from Central and Eastern Europe, with total net assets exceeding EUR 20 million in July.

It is particularly important to emphasize that the stocks within the fund are strongly linked to the real economic sector, providing investors with the opportunity for long-term, stable results. The Central and Eastern European region is still relatively undervalued, which means that there is significant room for further growth.

For those who want to invest in the fast-growing and dynamic market of Central and Eastern Europe, OTP CETOP UCITS ETF is an ideal way to access leading stocks in the region, without the need for detailed knowledge of local markets. Transparency, flexibility and growth potential make this fund an attractive choice for both private and institutional investors.

For more information about investment conditions, please contact us via e-mail at pbis@ckb.me or directly to the address of the Director of the Global Markets and Financial Services Directorate miljan.mijatovic@ckb.me

The above information is for informational purposes only. The information contained in the above text does not constitute an offer to the public, an investment recommendation, investment advice or investment analysis, nor an offer, proposal or invitation to execute a transaction. Before making an investment decision, please read the Fund Prospectus, the Key Investor Information Document and the Funds' performance in order to fully understand the potential risks and rewards of the relevant investment decision.

( CKB )