Archive for October, 2007

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.
Filed under: Real Estate

These days many people hear the various investments that are not investing as usual. Investment in real estate investment trusts, private equity, hedge funds, capital protected funds, capital guaranteed funds, and some others. Those who have sufficient funds and is known as a smart investor (smart investors), even wealthy investors called high net worth investors, already very familiar with the term.

Alternative investment means investment act outside the usual alternative. Investments made in investment instruments with a specific purpose and sufficient risk, but there is a high rate of return possible. Initial capital or not missing the due date, but the returns are not clear, indication only.

In accordance with the concept, these investments are generally expected not to cause reduced investment principal. If investors put money Rp 1 billion, the funds will go back to the period value as well. When the principal returned, returns are low and can be high. Investment returns may be higher if the investment plan in accordance with reality. For example, these investments hoping the price goes up for the future and the fact that stock prices are rising. This product returns can be quite large if the investment by the investment manager of the target according to the prospectus given to investors.

High net worth does not usually think of high returns, but wanted the funds are not lost. These investors can live from other investments and provide a pretty good profit. Therefore, investments are always a product previously disclosed to investors. If investors are not included in the investor group, should not have to go in this alternative investment products.

Real estate investment trust (REIT) is a mutual fund with a portfolio of properties in the area. Property itself has a slightly different cycle with other industries. If interest rates keep falling, investment in the REIT attractive enough for those who do not have enough funds to buy property. Typically, the property has negative relationship with interest rates. If the interest rate rises, investment in property will decrease and the demand decreases and vice versa, demand for properties will rise when the interest rate falls.

The decline in property demand make the price decrease and REIT property value decline. Instead, investors buy when the price of REITs down and sell when the REIT at a price peak. However, Investors also need to have a long-term outlook for REIT usually have good results in the long run. Investors also had to watch the property from the REIT portfolio as a strategic portfolio that is not going to make the results are interesting. Usually investment in property always uses the words location, location, strategic location.