What is synthetic fund in SAP FS-PM - Policy Management?

SAP Term: synthetic fund

• Component: FS-PM

• Component Name: Policy Management

• Description: Fund defined and issued by the insurance company, which has defined interest calculation for a specified period. The value development for this fund is not based on the evaluation of investment objects and therefore is independent of the capital markets. Synthetic funds are used to enable the mapping of guaranteed interest calculation in unit-linked life insurance. Synthetic funds are not traded on the market and therefore do not have an ISIN.

Smart SAP Assistant

• Key Concepts: 
  A synthetic fund is a type of fund in the SAP FS-PM Policy Management component. It is a virtual fund that is created by combining two or more existing funds. This allows for the creation of a new fund with different characteristics than the original funds. 
  
  How to use it: 
  Synthetic funds can be used to create a new fund with different characteristics than the original funds. This can be done by combining two or more existing funds into one virtual fund. The new fund can then be used to manage investments and other financial activities. 
  
  Tips & Tricks: 
  When creating a synthetic fund, it is important to consider the characteristics of the original funds and how they will affect the new fund. It is also important to consider the risk associated with the new fund and how it will affect the overall portfolio. 
  
  Related Information: 
  For more information on synthetic funds, please refer to SAP's documentation on FS-PM Policy Management. Additionally, there are many online resources available that provide more detailed information on synthetic funds and their use in financial management.