Risk Investment

The entry is much easier than with Funds, because there are no or only very low minimum investment amount, the open fund shares are tradable at all times just and a legal control with corresponding requirements for the fund company. Well check investors however should costs such as administrative or management fees, as these are often very different. The possibilities of both forms of investment are very different: while open-ended funds flexible to respond to market developments, fund management can quickly make redeployment of investments. The industry is but at the downwind, will decrease the value of the Fund. A strong dependence on the market or the industry. Quite different at the closed variant: here the investors almost participates in the society and is completely independent of financial market volatility and stock market turmoil.

However, a strong dependence on a special project is given by the long capital, the usually high minimum drawing sums and the setting on one or very few real estate. This runs not as expected, is a total loss. The legal form or the exact purpose of activities critical to the taxation is the tax aspects of closed-end real estate funds. Most are subject to income tax for income from renting and leasing. The Fund designed until a few years ago, as available (tags: write-offs and write-downs) have been largely supplanted by a reform of the tax law in 2005 from the market. For open-ended funds, the tax rules on withholding tax and speculation period must be observed. The peculiarity of real estate funds, however, is that depending on the type of investment distributions may be wholly or partially exempt from tax.

Investments in foreign real estate, if any other rates or the provisions of a double taxation agreement must be observed. What kind of Fund for whom? The investor not as a sole investment should buy closed-end real estate funds. The investments are suitable depending on the structure and risk appetite as additional support for a Risk averse, wide set up asset management with appropriate asset size. To keep in mind are the individual rules of the respective fund for risk-sharing, minimum investment and tax treatment. Open-ended real estate funds are the low minimum investment and trade can at any time possible in principle for every investor who would like to rely not only on such as stock or bonds. The performance is always understandable, in contrast to the closed variant, however, is a function of financial markets and industry trends. Conclusion the optimal investment strategy should be as broad. Corresponding asset and the necessary knowledge, closed-end real estate funds can represent a great diversification opportunity, which are also independent of market fluctuations. Open-ended real estate funds are easier to act and can also be purchased from investors with a small fortune as a depot admixture. Getting started is easy, but should is be informed well previously in the course of a reasonable investment, which fund to own risk-taking fits. For example the Internet pages on are useful for this purpose.