Since its launch in 2012, the Portugal Golden Visa Program has proved to be the most popular residency by investment program in Europe, drawing thousands of investors from across the world due to its benefits and flexibility.
As many international investors turn to the investment scheme, a significant number feel the investment funds options are a bit scary, confusing, and complex than the classical real estate investment options.
More often than not, most potential investors find it uneasy deciding on the best funds for their venture. However, choosing the best funds for your Golden Visa has been made hassle-free as experts give insights on how to select the best funds for your investment and make a profit.
How to Choose the Best Funds for Portugal Golden Visa Program
Choosing the most appropriate investor visa fund requires exploring a long list of essential items to help you vet out various funds options to ensure your choice gives the best return on investment.
Below is a glimpse at some of the critical aspects that can help choose the most appropriate fund for your venture.
Focus on Funds Strategy
Funds strategy entails a wide range of investment types. This focuses on startup companies in diverse industries, real estate investments, commodities, and yield generating assets. Currently, real-estate investment funds attract an enormous number of investors, making it popular than in other investment options.
Whether you want to make investments in the real estate industry or startup companies, you should consider the strategic location for the primary assets if you intend to invest in real estate and specialization if you choose startup companies. Find out the expected internal rate of return and dividend distribution.
Additionally, learn about the fees involved in the investment, target commitment to raising a specified amount of money, portfolio diversification, and the fund’s exit strategy. If you do not understand these aspects, you can consult your independent advisor and determine whether the strategy makes sense based on the prevailing market condition.
Funds Lifecycle
Before investing your money, it’s imperative to know the time it would be locked in for. As such, you should know the CMVM registration date, the end date for the subscription, funds maturity, or closing date. Also, find out if the funds have any potential extension period. You can inquire about the capital raised so far to evaluate the fund’s feasibility in meeting the set target.
Evaluate Fund’s advisor and Funds Manager’s Credentials
Funds advisor and funds manager are key role-players from the date of your investment to your fund’s maturity. Therefore, you’ll rely on them to make a profit on your invested money.
Before deciding on the type of funds to invest in, it’s crucial to evaluate the fund’s advisor and manager’s credentials to understand their capability and consistency in giving the target outcome. If possible, you can organize a face-to-face meeting and get all your questions answered.
Evaluate the Fund’s Risk-Return Profile
The risk-return profile of any Portugal’s Golden Visa Investment varies depending on its portfolio diversification and market exposure. If you’re risk-averse, you should look for funds that carry low to medium risk and low to medium profits.
Such funds prioritize investor funds protection, thereby reducing the chances of losing your invested capital.
If you have no problem handling high risks due to their potentially high returns, you can invest in startup companies or other ventures with significantly high returns.
Find out whether the funds are safe to invest in
Since the investment funds options are all risk funds, you have to do your homework right by assessing the investment, the fund’s strategy, and the management history of the fund’s manager based on their track record to gain the confidence of getting your capital back. After all, all the funds do not guarantee your capital.
At Portugal Golden Visa, we give all the insight and information you need to choose the right fund for your Portugal Golden Visa investment and get started without a daunting hassle.
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