Private equity investment fund is somewhat different from REIT products. Direct investment in shares. Investment managers have the freedom to invest in stocks. Funds may be invested entirely in stocks, but because there’s motto diversification, investment managers rarely invest in one stock alone. Generally, the investment manager to invest a minimum of five shares to spread investment risk.

Private equity fund of funds is usually quite large and always hoping enough returns and standards always provide the return of about 15 percent of the lowest, and some have target rate of return of 25 percent per year.

Investment managers generally invest with these returns and when it is exceeded, will immediately seek out other markets that can provide results for the rate of return. However, the investment could remain as long as can give greater results.

On the other hand private equity fund managers typically earn a profit twice. First, profits from the stock market and the relevant countries benefit from foreign exchange company. Typically, the investment manager in the value of the relevant country’s currency is very weak so that the exchange funds and more calculations, the stock was cheap. Then the stock rises and its currency began to improve and re-sold and direct stock purchase foreign currencies that are cheaper.

When investors entered on this investment, investors must take into account when exit. If investors have the results to be doubled, should get out of this product. This investment risk is high enough for the investment managers have the same competitors and may also want to profit by the weakness of other funds.

Likewise, hedge funds. How it works almost the same as private equity funds. Hedge funds are a bit more open and investors know how it works since it first developed. The private equity fund, investors may only very small, but has a large enough capacity. This new investment because we know a new entry in the market despite the fact that Indonesia has a similar investment in.
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