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Fig. 4.
Characteristics and distinctions of funds
| Type of fund | Full name | Characteristics | Participants | Unit issue | Liquidity of investments | Investment strategy |
|---|---|---|---|---|---|---|
| FIO | Open-ended investment fund | Most popular, high liquidity, possibility of free purchase and redemption of units | Natural and legal persons | Continuous, possibility to buy and redeem units at any time | High – redemption of units at any time | Diversified – equity, bond, mixed, umbrella funds |
| SFIO | Specialised open-ended investment fund | Similar to a CIF, but with participation restrictions and additional investment conditions | Selected group of investors (e.g. institutional, meeting certain criteria) | Continuous, but restrictions may apply | Restricted – redemption conditions may be set out in statute | May be more specialised than in a CIF |
| FIZ | Closed-end investment fund | Limited issuance of investment certificates, investment in more complex assets, higher entry threshold | Institutional and individual investors with more capital | Limited, issue in specific tranches | Low – redemption of certificates at specific times (e.g. quarterly) | More risky investments – real estate, receivables, currencies, derivatives |
| DFE | Voluntary pension fund | Third pillar pension fund, conservative investment policy, mandatory contributions | Individuals saving for their retirement | Continuous, but with specific conditions | Very low – withdrawal of funds at a distant date | Conservative, long-term, similar to OFEs, similar to umbrella funds |
Summary of key information on IKE and IKZE
| Programme | Introductory act | Form of participation | Funding | Tax benefits | Forms of investment | Inheritance |
|---|---|---|---|---|---|---|
| IKE | Ustawa…, 2004a | Voluntary, available to persons aged 16 and over | Savers: annual contributions up to 300% of average salary | Exemption from capital gains tax upon meeting age and saving period conditions | Investment funds, bank deposits, government bonds, brokerage accounts | Funds are inherited free of inheritance and gift tax |
| IKZE | Ustawa (2011) | Voluntary, available to any individual | Savers: annual contributions up to 1.2 times (or 1.8 times for entrepreneurs) average salary | Deduction of contributions from tax base, flat tax of 10% after age 65 | Investment funds, brokerage accounts, deposits, investment policies | Funds are inherited with the possibility of retaining tax benefits |
Types of government bonds available on the market and those available only under IKE and IKZE
| Type of bond | Interest rate type | Access within IKE and IKZE accounts |
|---|---|---|
| 3-month savings (OTS) | Fixed | No |
| 1-year savings (ROR) | Variable | Yes |
| 2-year savings (DOS) | Fixed | Yes |
| 3-year savings (TOZ) | Variable | Yes |
| 4-year savings (COI) | Inflation-indexed | Yes |
| Family 6-year savings (ROS) | Inflation-indexed (for 800+ beneficiaries only) | No |
| Retirement 10-year savings (EDO) | Inflation-indexed | Yes |
| Family 12-year savings (ROD) | Inflation-indexed (for 800+ beneficiaries only) | No |
Types of institutions and available asset classes within IKE and IKZE accounts
| Financial institution | Available asset classes | Number of institutions under the scheme* | |
|---|---|---|---|
| IKE | IKZE | ||
| Bank | Bank deposits and savings accounts | 14 | 3 |
| Investment Fund Company (TFI) | Investment funds (e.g. shares, bonds, mixed) | 22 | 21 |
| Brokerage house | Shares, bonds, ETFs and other exchange-traded instruments | 9 | 9 |
| Insurance company | Insurance unit-linked funds (UFK) | 14 | 9 |
| Voluntary Pension Fund (DFE) | Pension funds (investing in shares and bonds) | 4 | 6 |