The fund option for getting your Portugal Golden Visa might sound more confusing and complicated than investing in real estate. But more investors are now keen on making fund investments, and all they want to know is whether a particular fund is going to be their right fit.
Fund investments can be the sound choice, provided they are done right. And here are a few tips on how you can do it right.
Investment Strategy of the Fund
Funds can focus on all kinds of investments, starting from commodities, startups in different verticals, to real estate. However, real estate is the focus of most funds.
Before you choose a particular fund, make sure you check all the details of the fund. For example;
- Does the amount that the fund plans to raise even sound realistic?
- Which fees will you be paying?
- What is the fund’s exit strategy?
- Are you going to get dividends annually?
You need all this information to compare various fund options and get a clearer understanding of the opportunities available in the market. Feel free to ask all your questions. You’re going to commit a huge amount of money and it’s important to have all the information.
Lifecycle of the Fund
Before giving your nod to a fund, you also need to know the duration for which your money will be locked in.
So, learn more about these three important dates:
- Fund maturity/closing date
- End of the subscription period
- CMVM registration date
Also, remember to ask if the fund comes with any extension period. It helps to know beforehand whether the fund manager can and is going to extend the duration. You can also inquire about the amount of capital that has been raised thus far. This will assist you in determining whether the target capital and subscription period are compatible.
Fund Manager
Your fund manager will manage the process until your fund matures. So, you will be depending on them to make sure that your investment journey goes smooth all the way through. Thus, checking the credentials of the fund manager beforehand has to be one of your priorities.
It is always good to set up a personalized meeting. You can ask any and every question you have during these meetings.
Note whether their interests as a fund manager are on the same page as yours as an investor. In your meetings, make sure to understand the following:
- Do they seem confident enough about their capabilities?
- Do they have a good background?
- Do they give clear answers to your questions?
If you’re not familiar with funds and funds managers, it might be difficult to make a thorough vetting. This is why working with independent advisors who don’t push certain products is vital.
The Risk and Return Profile
When you’re choosing a fund, you need to be sure about your risk appetite and whether the corresponding fund is the right fit for it.
An investor can have a win-all or lose-all attitude, or they can choose to preserve their capital instead of losing money. For the former, funds that are more into startups might be the right fit, while for the latter, a fund that invests in real estate might be a safer choice. Speak to your independent fund advisors first before you make a commitment.
The Endnote
In Portugal, you can be assured that all Portugal Golden Visa funds need to abide by the rules of the Portuguese Securities Market Commission (CMVM). Thus, they are safe to invest in. But there are risks involved in all funds, which is why assessing your options is important.
If you’ve decided to make a fund investment for your Portugal Golden Visa application, contact us and speak to our experts and get personalized guidance.
