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Showing posts from December, 2021

4 Tips To Keep In Mind When Investing In Unicorn Private Equity

Acquiring unicorn private equity is quite different than buying shares of a well-established organization. There are many tangible and intangible aspects taken into consideration when investing in unicorn private equity. Factors like the goodwill of the entrepreneur, the patent of the offered product/service, or the physical assets that they have at their disposal like transport facility, office, production facilities, etc. are a few of the factors that influence the selection process of an investor. Being a beginner, it is quite natural to feel confused and take the wrong investment decision. However, to help you avoid such a dilemma, here are 4 things to keep in mind when investing in  Unicorn Private Equity  – 1)      Understand the startup’s Unique Selling Point (USP) Every startup that turns into a unicorn has a strong USP that is protected by a patent or copyright. This is an important point to understand before you take an investment decision as it is recommended to put yo

What Is Commercial Paper -- In Layman'S Terms?

  Cash Flow problems are often faced by MNCs all over the globe, as they have multiple inflows and outflows of money.  Commercial paper debt Singapore  is one way a corporation overcomes this obstacle in Singapore. The same is applicable for companies across the world as well. Being a new investor, you may be confused about such debts and how you can make money out of such investment opportunities. Nonetheless, to satiate your curiosity here’s everything you need to know about commercial paper debt - Let’s start with what is commercial paper. Commercial paper is technically a way for a company to gather capital to resolve its immediate financial needs and cash flow problems. It is usually issued by the company in denominations of $100,000 and thus is typically only accessible by institutional investors, high net worth individuals, and financial corporations. A commercial paper is an unsecured debt as the company does not commit any collateral in return for the investments accepte

Digital Securities Vs Physical Securities: Which Is Better?

Digital securities are the electronic form of financial securities such as stocks, bonds, etc. They are also known as security tokens. Physical securities, on the other hand, are financial securities that are in the physical form such as equity contracts, cash, etc. These were used to buy and sell equities before security tokens were introduced and are relatively less popular now. As a beginner, it is quite easy to be confused about these two forms of financial securities. However, to help you get further clarity, here’s a brief comparison between digital securities and physical securities - ·        Digital securities are more convenient Since buying financial security with just a few clicks is way more convenient than physically buying an equity contract, digital securities have made the capital markets much more accessible to the masses. Buying securities in the olden days meant you receive a physical copy of your contract/transaction receipt. This increased the time taken to buy an

Where Do Hedge Funds Get Their Money?

How do hedge funds get money for their investment and portfolio build-up? Hedge funds get their investment capital from multiple investors. These individuals/corporations offer money to the hedge fund and  Equity Hedge Fund  in hopes to earn a higher return on their investment. Further, you may ask, how does the hedge fund earn, though? What strategies does it use to get money for the investors? The hedge fund or the equity hedge fund gets money for its investors by using the following strategies - 1.        The bull and bear strategy  - The hedge funds that use this strategy usually believe in being the bulls or bears of a trade. This means they would buy a position in the financial market if they see a particular asset having the potential to rise and similarly, open a sell position if they find an asset that is dropping in value. This is also applicable in the derivatives market with the help of a call or puts option; these are essentially contracts that give their holders t

4 Tips To Find The Right Capital Markets Platform For You To Invest Through

Every capital markets platform has its own set of different pros and cons. As an investor, it is your responsibility to find the brokerage platform that not only fits your budget but even offers you a diverse range of financial assets to invest in. However, if you have the right information, it is not a difficult task. To give you a clearer idea of the same, here are 4 tips to find the right capital markets platform for you – Compare the brokerage fees Each broker charges a different commission and has different operational rules. Many times brokerage fees are different for different asset classes. Thus, it is recommended you understand how much the broker will charge you for buying or selling the financial assets that you plan to deal with. You can easily search for this information on the internet or access it by visiting the brokerage company’s website.  Research the different available financial assets There are only a handful of capital market platforms that allows you to invest i

What Is Passive Real Estate Investing?

Passive real estate investing  does not require you to manage the properties you put your capital into. One of the best ways to do passive real estate investing is to put your money in REITs. You put your money in REITs and let them garner returns for you by managing a portfolio of money-making properties. To efficiently invest passively in real estate, it is important to know how to select the right REIT to invest into. Nonetheless, to help you with the same, here are 2 ways to identify a good REIT to invest into - 1.        Higher returns than their public counterparts Regardless of which type of private REITs you decide to invest in, the good ones have a track record of providing higher returns when compared to their exact public counterparts. While private REITs are able to provide their investors with a minimum of 7% to 8% returns on their invested capital amount, public REITs are able to reach the bar of 5% to 6% returns on an average comparatively. 2.        Higher returns than

4 Things To Keep In Mind Before Investing In The Private Capital Markets

Private capital markets are known to be less volatile, more rewarding but also more costly to get into. Thus, investing in them is not similar to investing in the public markets. If you are just starting out as a private market investor, it is quite natural to feel confused. To help you avoid the common pitfalls with ease, here are 4 things to keep in mind before your first investment in the Private Capital Markets - 1) These are typically long-term markets Since the public markets are easily accessible, they have a lot more volatility and volume when compared to the private capital markets. Due to this, it is possible for you as an investor to quickly buy and sell your publicly listed financial assets. However, the same cannot be said for the private capital markets and one needs to consider staying invested in a private market financial asset for a relatively longer time range when compared to their public counterparts. You should also be aware of the lock-in period that many of the

How Does Blockchain Open Up Unicorn Investment To Everyone?

There are a lot of benefits of blockchain technology. Digital securities are based on blockchain technology and offer a lot of benefits. They have entirely changed the way we invest. Here’s how they have made  Unicorn Funds  more accessible for all - 1.      It lowers the transaction cost – Digital securities remove the need for any costly infrastructure that is needed to keep a record of the transactions. As all the required processes of maintaining the records are carried out online automatically, the need for an intermediary agency to do the same is removed. This brings down the cost of transactions for all involving parties, the brokers, issuers, and even the investors.   2.      It provides better operational features – The securities market is regulated in the majority of countries. Implementing all the rules and regulations in the physical world is quite a task given the volume of transactions that take place in a day. However, with the help of the blockchain techn

What Are Private Capital Markets And How Are They Different From Their Public Counterparts?

Public capital markets are made up of financial assets that are listed in the public domain and can be easily accessed by the many retail investors present today. However, diversifying your portfolio can happen only to a certain limit in the public domain while accessing the private capital markets helps you attain a higher heterogeneity for your investment portfolio. If you are interested to invest in  Private Capital Markets  but do not know what exactly they are and how they differ from their public counterparts, this is the perfect article for you. To know more read on   What exactly are private capital markets? Private Capital Markets  are made up of financial assets that are not listed in the public domain and can only be accessed by institutional or accredited investors. While investing in the public market allows you to start with a small capital amount relatively, making even an entry-level investment in the private markets requires tens of thousands to even millio

How Do You Invest In Hedge Funds? Is Investing There Worth It?

  One can only  Invest In Hedge Funds if they are an accredited investor, i.e., a high net worth individual, institutional investor, or a bank. This is because hedge funds are a part of the private capital markets and require millions of dollars in capital to even make an entry-level investment. You can invest in them through brokers present in the market or by connecting with the hedge fund directly. There are a lot of benefits of investing in hedge funds, such as - They offer portfolio diversification - A private hedge fund tends to stay away from public markets and any other financial assets that are affected by the price movements of the same. This allows you to keep your investment diversified by including assets that are generally not available to funds like mutual funds. Get a bigger hand in the world of investing - Since hedge funds are able to access an increased number of investment tools, they are able to employ different investment strategies that their financial cou

Here’s Everything That You Need To Know About A Unicorn Private Equity

 It is a common notion that making unicorn private equity a part of your investment portfolio means a higher return. However, that is only half of the truth. Investing in a unicorn startup is surely very profitable but it also comes with an equally high risk. To give you more clarity on this topic, here’s everything you need to know before investing in Unicorn Private Equity – What exactly is unicorn equity? Unicorn startups are essentially new companies that have reached a market valuation of a billion dollars or more. This valuation is basically the amount an investor is willing to pay to be a part of the startup’s journey. To accept an investment, a company has to offer something of value in return. This is usually achieved by offering stakes in the organization to the investors in exchange for their money. As and when the company grows, the stakes offered to investors increase in value proportionally and become extremely valuable with the passage of time. To give you a brie

Which Is The Best Investment Platform In 2021?

Finding an apt capital markets platform that can help you with your investment journey is quite important as it will play a major role in determining whether you make a profit or loss. However, there are many such platforms present in the market today and the concept of one single platform being the best of the lot is simply naive. You can easily get a list of them by searching the internet for such service providers followed by the country you live in, for example - '  Investment Platform Singapore  ‘ or ‘ investment market India ‘, etc. To help you identify the investment platforms that are worth investing through, here are 3 qualities of a good capital markets platform for your investment purposes 1)      They have an easily accessible customer support system   People who are just beginning their journey as investors might have a lot of doubts about using the platform efficiently. Due to this, reputable capital market platforms provide customer service that is easily acc

Did You Know Of These 4 Features Of A Good Unicorn Private Equity Investment?

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 Investing in unicorn private equity is a great way to diversify your investment portfolio. With the ability to become a highly profitable financial asset, venture capital is also one of the most sought-after investment options present in the market today. Due to this popularity, there has been a lot of growth in the entire startup ecosystem. Asa result of which, there are around 500 unicorn startups present in the market today as compared to the only 39 that existed when the term ‘unicorn’ was coined. However, when starting out, how do you select the most profitable Unicorn Private Equity investment from so many options? To answer that question and help you make an informed decision, here are the 4 best features of a good unicorn private equity investment – Their management is highly skilled    Leadership is one of the most important aspects to assess when evaluating the growth potential of a startup. New companies that become successful are led by visionaries who are

How Can I Select Well-Performing Hedge Funds To Invest In?

  As a beginner when you set out to find good private  Hedge Funds , there are a lot of questions that can arise in your mind during the process. The most important question among the many doubts is what makes a hedge fund good? And to help you with just that, here are 3 qualities of a good hedge fund - Masters of a particular investment domain - It is not logical to be good at everything and thus the same applies to hedge funds, instead of finding the one that can do everything, find the hedge fund that is the unchallenged king of a certain investment domain. To clarify further, if you have an appetite for risk in the hopes of gaining exponential returns, find a private hedge fund that is the best at leveraged trading. However, if you like to keep the risks at a minimum at the cost of the profit potential, look for funds that are hedge masters; hedging is the practice of opening both buy and sell positions in such a way that the market exposure for the investment remains neutral. Th

4 Things You Need To Know About Digital Securities Before You Start Your Investment Journey

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  Digital securities, also known as security tokens, are essentially digitally transferable forms of debts, equities, or any other forms of financial assets that are available to the investors present today. The introduction of these security tokens has completely changed the way people invest in recent times and has been extremely helpful in making the investment market much more accessible. However, if you are just starting your investment journey, here are 4 things that you need to keep in mind before you start dealing with digital securities – Not all digital securities are cryptocurrencies Digital securities , like well-known cryptocurrencies such as Bitcoin, are based on blockchain technology. Though the technology powering them is the same, cryptos and security tokens are very distant things. This point is important to keep in mind as many countries have restrictions when it comes to investing in cryptocurrencies and as an investor, if you do not have the right knowledge, you ca

What Are The Pros And Cons Of Investing In The Public Markets Versus Private Markets For High-Networth Individuals (HNWI) Who Have Access To Private Markets? What Is Your Preference As A HNWI?

 Being an accredited investor who has access to both the private and public markets, I personally prefer Private Market Investments over public market ones. Just like the public capital markets, investing in private markets has its own set of pros and cons. If you are an HNWI and are confused about which financial markets suit you the best, here is a short comparison between the two - 1) It   has lesser price fluctuations The valuation of private market financial assets is not affected by the price movements in the public markets. This reduces the volatility of the private markets and thus reduces the risk investors are exposed to. Also, private market investments are generally long term and arbitraging is not very profitable or desirable with such financial assets and thus their valuation does not fluctuate as often as their public counterparts. If you are an experienced investor in the public markets, you might be familiar with the concept of grouping. Wherein, if one industry is in

4 Qualities Of A Good Private Hedge Fund

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 As a beginner when you set out to find a good private hedge fund, there are a lot of questions that can arise in your mind during the process. The most important question among the many doubts is ‘what makes a hedge fund good’? And to help you answer that, here are 4 qualities of a good hedge fund – Masters of a particular investment domain – It is not possible to be good at everything and thus the same logic applies to  Hedge Funds .  Instead of finding the one that can do everything, find the hedge fund that is the unchallenged king of a certain investment domain. To clarify further, if you have an appetite for risk in the hopes of gaining exponential returns, find a private hedge fund that is the best at leveraged trading. However, if you like to keep the risks at a minimum at the cost of the profit potential, look for funds that are hedge masters; hedging is the practice of opening both buy and sell positions in such a way that the market exposure for the investment remai