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Worldwide investment professionals are seeking alternatives to investment in US based Equities and Real Estate, and are finding non-US based investments which are offering larger--and, in some cases, guaranteed, returns. Some brokers are now advising clients that between 25% and 40% of their investment should be in foreign investment, in order to successfully blend the risk.
Although the blended Return on Investment for US-based products has historically been in the double digits, recent events and changes in the investment climate within the USA have worldwide entrepreneurial investors seeking the next true investment opportunity.
This sea change in thinking has been classified as The Flight of Capital, and it represents a change in the financial dynamics of countries ranging from sovereign funds through money managed for private citizens and investment groups. Ex-USA Investors see it as a simple diversification of investment and "following the money." With the United States long known as a safe haven, political turmoil in the USA has upset worldwide investors, bringing a variety of financial and societal changes to what had been accepted previously as "the world order."
Against this backdrop of events, investment in the USA no longer represents the attractive investment opportunity it once did, and a variety of investment vehicles have opened the door for foreign investors to become innately involved in managing their own financial futures. Foreign investment fundsespecially those chartered overseasgenerally operate with rules different from those in the USA.
Note that the rate of return on investment in offshore investment funds is significantly higher than that generally accorded to US-based funds. The ROR is directly related to the level of risk incurred. All investment has risk. The risk/reward profile determines the amount of return which may be expected for the funds invested.
A sophisticated investor interested in achieving mid range to long term gain can invest in non-public filings called Private Placement Offerings, intended to raise capital for both small and medium sized businesses and industry. The amount of money raised within a Private Placement varies, but generally is considered to be in the $10 Million range, or less.
The term Private Placement defines either a debt or equity transaction which limits the number of investors involved to a relatively small number, and targets investment by private equity funds, insurance companies, and trusts, among other participants.
US Accredited Investors are prime targets for investment in a Private Placement. Offshore investment funds also successfully invest in Private Placements to benefit their clients.
The Private Placement Offering is governed by a document called a Memorandum. The Private Placement Memorandum, or PPM, develops multiple directions of traction; first and foremost, a business which is seeking funding---but does not want a large number of shareholders of common stock---may elect to complete a Private Placement Offering.
Another way that a Private Placement can develop traction is within the PPM format itself; the funds distribution may cover a purchase of stock of the seller, and the deal may be structured so that equities will not only return capital to the investor, but may also return profits through the percentage of equity held.
Over the years, the PPM format has proven very popular to raise capital in lesser amounts than that which would be raised through an Initial Public Offering.
Investors or investment groups will participate in a Private Placement because the principal objective of those groups is an investment vehicle which they might hold longer than an equities placementand as a functional aspect of the Private Placement, the potential investor is actually warned in writing that there may be no additional or secondary market for what he/she is purchasing.
In other words, a Private Placement can become an excellent win-win for the investor.
Lets look at some Smart Investment Tips for maximizing your Investment Portfolio.
Smart Investment Tip # 1: Diversification is Key.
20 years ago, everyone wanted to be in oil and gas. If they got in it, theyre golden.
Ten years ago, they wanted to be in real estate. If they invested wisely, good for them.
Five years ago, they wanted to be in mortgages and/or mortgage based equities.
Today, what is the key to successful investment?
Diversification.
Good investment advisors have always structured multiple investments so as to spread risk across several different areas. The key to this thinking is that if one area, such as equities, or precious metals, or real estate, or business ownership, decreases in value, one of the other areas will create additional upside potential or opportunity. Theres nothing inherently wrong with this thinking, and many people have realized significant gains from following this pathway.
Smart Investment Tip # 2: Follow the Money.
NetVestFund.com believes that there is significant upside to two specific areas of investment. Anyone can make money in any investment if he or she sticks with it long enough, invests enough, and brings enough diversity to his or her portfolio. The investment professionals at NetVestFund.com are expert in two specific areas; Private Placement Offerings, and FOREX, or Foreign Exchange Trading. NetVestFund.com is committed to these two specific areas.
FOREX is tied directly to money. Not to investments, or to business performance, but to money. Think of a huge worldwide marketplace constantly in fluxchanging on a daily basis as to worth. Who will bid what another wants and who will pay what another charges? FOREX offers this type of investment. Its fast, its not for the faint of heart, and it demands critical thinking and critical planning. NetVestFund.com recognizes these requirements and works to attain returns otherwise unattainable with other types of investments.
PPOs create revenue bilaterally. They create revenue based upon returns paid for the use of the money, and they create revenue based upon the initial recognition of great business deals. Not only does NetVestFund.com make money on the return for capital put at risk, but it makes money on an equity basis on the business against which it has loaned the money. You realize two different ways to create wealth on a PPO.
Smart Investment Tip # 3: Invest with Professionals who understand world investment.
Everyone at NetVestFund.com represents multiple years of dynamic trading experience. As a matter of fact, the principals at NetVestFund.com represent a total of hundreds of years of trading experience.
Over the time of their investment experience, theyve seen recessions and contraction; theyve seen expansions and their share of jobless reports, Beige Book summaries, movements within the US Fed, and real estate bubbles and meltdowns. They have tired of media shouting about jobless rates, inflation, and whether the bond market is linked to inflation. Their specific decision to develop offshore investments hinged upon the fact that they understand the sophisticated nature of the offshore investor, and they understand that he/she is interested in development of a growth portfolio not tied specifically to the economy of one country or one region of the world. They have elected to let multiple countries impact their trading world.
Smart Investment Tip # 4: Develop a Systematic Investment Plan and Vehicle
High net worth individuals recognize that a systematic investment plan can help keep their investments on track. Its easy to simply put XX into an account, but systematically investing on a monthly or annualized basis not only allows you to see the net worth growth, but allows you to see how the compounding of your funds exponentially grows your portfolio. We recommend that you invest and choose an option/direction where you reinvest your earnings into higher yield options over the longer term. NetVestFund.com offers multiple funds for investment, ranging from the Life Time Promise Fund to the Flying Eagle Fund. Each fund has minimum investment goals, and has different yields, based on risk. As you become less risk-averse, you will find that your funds will increase proportionately.
Smart Investment Tip # 5: Build in Inflation Hedges
Inflation robs you of your financial gains. One must only look at the cost of a home now, vs. the cost of a home twenty years ago to see how prices have inflated over time.
If you had purchased a $100,000 home twenty years ago, your home would have increased in value substantially in the ensuing twenty years. However, if you continued to borrow money against the equity, and pulled significant cash from that value of your home, its possible that you could even be upside down on your mortgage vs. the value of the home.
One key to avoid inflation such as this is to build-in inflation hedges into your investment strategy.
How do you do that?
Invest in products and services which pay in excess of the inflation rate being incurred in the financial environment youre in. Work with your investment professionals to get to know your portfolio and the impact on it from external influences.
NetVestFund.com investment professionals will work with you to assist you in development of your own Personal Portfolio. isn't it time that you had the personal attention of a NetVestFund.com Professional Advisor?
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