Compensa Life » Useful info » Investment


Investment fund. Investment fund means the funds of investors placed in a single pool managed by the fund management company by investing them into various instruments or securities (shares, bonds, financial derivatives, money market instruments, real estate, etc.) according to the established strategy. The insurance premiums paid in accordance with the life insurance contract are linked to the investment units in accordance with the investment plan chosen by you (percentage allocation of the insurance premium among different investment funds).

 Types of investment funds. Bond funds Bond funds most frequently invest in interest-bearing securities, most commonly in bonds. The portfolio of these funds consists of the bonds with different levels of return and risk. Usually, the return of bond funds is lower than the return of balanced or equity funds. These funds are recommended for conservative investors or those investors who have chosen the shorter period of investment.  Equity funds Equity funds invest in stocks. These funds may be classified according to regions, economic sector, type of company. Stocks are always historically more profitable than bonds and money market instruments. However, the equity funds are always quite high risk funds. These funds are recommended for longer period of investment.  Balanced funds Balanced funds invest in stocks, interest-bearing and money market instruments. Proportions of these instruments in the fund are established in the funds' investment strategy. The return of balanced funds is usually higher than the return of bond funds, but lower than the return of equity funds. These funds are medium-risk funds. Therefore they are recommended for risk diversification of your investment portfolio. Benefits of investing in funds

  • Investment risk is diversified by investing in different instruments, global regions, industries, etc. Therefore such investment is safer than the investment in individual stocks or bonds.
  • Investment funds are managed by the professionals having the long-term investment experience in accordance with the strategy established by the fund.

It is easy to invest and monitor. Linking of your insurance premium to a certain investment direction enables you to participate in large security (e.g. stock) markets where entry is too difficult or too expensive for small investors.  Investment funds regularly publish information on the results of fund's performance. When investing insurance premiums under the life insurance contract, you have the opportunity to choose several investment directions and, in case of change of your investment strategy (e.g. in case of worsening of the investment results of the chosen direction), to change your investment direction or proportions of allocation of the chosen directions in the investment portfolio at any time.

Choice of an investment fund

When choosing the investment direction, it is important to take into consideration the investment period and the return expected by you. Return on investments directly depends on the chosen investment risk, i.e. the higher is the risk, the higher is the expected return. When forming your investment portfolio and following the chosen investment strategy (period, risk, return, etc.), we recommend to allocate the investments among several investment directions of different levels of risk.  Such diversification of investment portfolio helps to control the investment risk.

Investicinės grąžos priklausomybė nuo rizikos 

The investment directions offered by Compensa Life Vienna Insurance Group SE Lithuanian branch are classified according to the investment risk of a certain direction rated on the basis of 7-point risk scale, where 1-point investment direction means the lowest risk investment direction, and 7-point investment direction means the highest risk investment direction.

Investicinės rizikos skalė

 Investment directions offered by Compensa Life Vienna Insurance Group SE Lithuanian branch