There are a variety of investment options available to a broad range of investors, from tech start-ups and small businesses to the monolithic funds in gold. Although the investor’s lifestyle has been depicted, parodied, and exaggerated in numerous films, novels, and television programmes in a lurid blur of bright colours and whimsical sequences, the reality of the situation is that anybody can invest in anything they like, as long as they have the money to do so.
Professional investors make their living from savvy investments, aiming to multiply and expand their wealth and using their investment experience to take advantage of the market when the time is right. Despite the increasing prevalence of smart investment as a profession, the number of investor funds that target professional investors, catering to their pre-existing knowledge, experience, and expertise in the field of investment, is limited, and such funds are scarce, although they are not unheard of or at all non-existent.
The experienced investor fund, or EIF, was initially launched in Gibraltar in 2005, and is aimed at experienced, professional investors. Because this sort of investor fund is aimed at investors with a wealth of experience, it isn’t subject to the strict regulations designed to protect naive investors from predatory advisors, and is a versatile, appealing fund that can be set up quickly and easily. In fact, because the fund requires no regulatory approval, it’s possible to set up an EIF in a matter of days, allowing experienced investors to start seeing returns on their newly created fund far more quickly than with other, more tightly regulated varieties of investor fund.
Assets of the EIF
Although the EIF is not as strictly regulated as other investor funds, there are still steps that prospective professional investors must take when setting one up. For example, the EIF must issue a prospectus outlining the rules of the fund’s operation, any chargeable fees, the fund’s objectives, any restrictions regarding assets classes and, of utmost importance, the risk associated with the investment. This prospectus must align itself with recognised industry standards in order to be legitimate, so as to ensure that the prospectus issued to you is consistent with the industry standard. Worth noting is that the EIF does not have any restriction on eligible assets.
If you’re looking to set up an EIF, you should first make sure that you meet its requirements. To start, your individual net worth must exceed one million Euro, excluding residential property. This figure also applies to corporate bodies and unincorporated associations as well as trustees, whose trust assets must exceed one million Euro.
Apart from these minor restrictions, the EIF is wonderfully liberated from the shackles of regulation. EIF promoters do not need to be licensed, although the manager of the fund must be licensed in the jurisdiction of residence to provide investment management. As with all investment funds, in one way or another, the EIF does require a depositary, tasked with holding the investments on the behalf of investors, and EIF funds may enlist brokers to help out when it comes to trading activity.2016-01-21
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