Investment in Israel
Many Israelis are interested in investing different sums of money and are looking for a reliable investment house to work with over time.
There are several investment houses in Israel, and each one presents itself as the leading investment house.
So how do you choose your investment house?
There are a number of factors that need to be taken into account before choosing an investment house:
Maximizing returns over time
The main idea in investing money is to increase the amount through a maximum return that can be obtained for the original investment, therefore, before choosing an investment house it’s important to check the return on the investments over 3-6 years at least, and not to be impressed by one year’s return.
It is also important to know that past returns are not a tool for predicting future returns, but they can provide information about the conduct of the investment house with the funds.
Another thing to know in this context is that there is no obligation on investment houses to publish the returns in their portfolios, so if you find an investment house that operates in full transparency, this will be another sign of the security and quality of the investment house.
Paying minimum management fees
One of the significant considerations that can help differentiate between a recommended investment house and other leading investment houses is the amount of the commission and management fees that are charged, which can be very significant.
It is important to take into account that these fees are sometimes hidden, which makes it difficult to understand the fees of each investment house and making a comparison.
In addition to the management fees charged by the investment house there are fees charged by the bank where the account is being held. The bank charges custodian fees and transaction fees, it’s important to check how much you are charged by the bank for these fees.
Besides the management fees and the fees charged by the bank there can more fees, for instance in accounts that hold mutual funds or ETF’s (Exchange Traded Fund) there are management fees that are charged by the company that manages the fund (sometimes it’s the same investment house that is managing your account).
Paying reduced taxes
As part of the desire to earn as much as possible from the return on the investment, it is needed to maximize profit through the reduction of additional payments, such as fees and taxes.
As mentioned earlier regarding commissions, it is important to know that there are tax payments that vary according to the nature of the investment. Therefore before choosing an investment house it is important to make sure that the staff is aware of the differences and manage the investments taking into account the tax issue.
Investment house staff
There are different types of investment houses, some are large and long standing, and some are boutique investment houses. Whether the investor chooses one investment house or another, he should get the best possible service.
It is important to check those who run the company and how long they are in the same investment house. Frequent changes in the workforce may indicate instability. In contrast, in an investment house where staff members work together for a long period of time the work is more efficient and this can also have an impact on better results.
To summarize: it is important to carry out preliminary and in-depth research before choosing an investment house. Check the issue of commissions, get to know the staff, talk to clients of the investment house and ask all the important questions before choosing your investment house.
Personal Management IRA (Individual Retirement Account) is a financial product, which allows you to have full control over the management of your pension funds and Keren Hishtalmut. Priority manages for its clients their Keren Hishtalmut (in collaboration with Meitav Dash) under personal management while helping them meet their goals and needs with full transparency.
This product is for clients who want full control over their pension savings with a personalized portfolio.
IRA portfolios can be managed in the following cases:
• Amendment 190 funds – both in a direct deposit to a fund under personal management and in a transfer from a fund that has undergone Amendment 190 in a regular investment route. At the time of opening the fund under this category, it must be proven Receiving an old-age pension in the amount of the minimum pension (4,498 gross as of 2021), or that he has accumulated an annuity for an amount of not less than NIS 1,343 million.
• Keren Hishtalmut – starting with a balance of NIS 200,000.
• Liquid benefit funds that deposited until 31.12.2005 in a member’s provident fund in a self employed status and at least 15 years have passed from the date of the first deposit to the fund.
• Funds deposited until 31.12.2007 in self employed of employee funds, and over the age of 60.
• Beneficiaries money- transferring directly from a deceased fund or from a fund in the name of the beneficiary.
• Compensation funds that has undergone tax settlement.
Hedge funds
Hedge funds in Israel are partnerships that are incorporated for the purpose of sophisticated investments.
Hedge funds are not suitable for every investor since the risk levels in some of the funds are relatively high.
Unlike managed portfolios in hedge funds the money of the investors (partners) is in a joint account, and the fund manager manages the money for all the investors together.
Hedge funds have different strategies, while their purpose is to achieve a high return over time.
ZINYUK Bond fund – A limited partnership that specializes in investing in the local bond market, using hedging strategies and leveraging the fund’s assets in order to achieve an excess return over the general bond indices. The fund’s assets were carefully selected after conducting research and comprehensive analysis. The fund was established in early 2017.
ZINYUK Global fund – A limited partnership that invests in the world and in Israel’s stock markets, using day trading strategies and statistical arbitrage. The fund was established in 2008.
ZINYUK Technology – A limited partnership specializes in investing in Israeli hi-tech companies traded in the United States. The fund invests in both growth and value companies and in various areas of investment, including software, hardware, chips, communications, fintech, green energy, security, and cyber. The fund’s assets were carefully selected after conducting extensive research and analysis. The fund was established in 2022
AMIRIM Impact – A limited partnership that offers investors exposure to the growing Israeli economy by investing in mature companies traded on the TA 125 index and Israeli companies traded on stock exchanges in the USA, while at the same time investing in companies that operate fairly towards all their stakeholders. The uniqueness of Amirim Fund is that it provides a solution for investors who wish to invest in companies that give extra managerial attention to the issues of environmental quality, sustainability, society, ethics, and good governance. The fund was launched in 2023.
Priority Investment House is honored to announce its cooperation with “Tsuah Kahalachah” – the Rabbinical Committee for Savings and Pensions.
The purpose of the cooperation is to remove the halakhic barriers that have been in investing in the stock market:
- Ribit – Israeli owned companies that do not hold a “Heter Iskah”, anyone who receives profits from them violates the prohibition of Ribit from the Torah.
- keeping Shabbat – Substantial investments in non-Shabbat-keeping companies, aids in the desecration of Shabbat.
- Passover – Israeli companies traded on the stock exchange that do not sell the Chametz in their possession, as a result, the holder of the company’s shares owns Chametz on Passover.
Since March 2019, Priority Investment House is an investment house with a kosher certificate, approved to manage kosher investment portfolios, under the supervision of the Kashrut committee.
kosher portfolios at Priority are invested in investment tracks developed to enable Torah observant Jews to enjoy rates of return similar to portfolios in the general tracks.
