Whether you invest directly or through an institutional portfolio bond, your monies could be at risk. The facts are that what they call “boutique funds” are being launched at an astonishing rate compared to twenty years ago.Boutique funds generally pay up front commissions to advisors, have a good story and a relatively short history of performance to judge them by. The biggest problem these funds can have is a lack of liquidity, so when too many investors apply at the same time for redemptions or to cash them in there is a problem.A lot of these funds also have unique way of being valued (sometimes being valued by themselves) they have continuous growth lines when checking for performance showing little or no volatility, which in turn encourages investors to keep their monies in the fund and when they are suspended , it is usually overnight without any warning. With huge amounts of investors money suspended and frozen this year alone , it must be time to ask yourself “what can I do to protect myself” The first and strongest point that should be made, is the investor has to take some responsibility for what happens to his assets. It never ceases to amaze me how most expats work like crazy for most of their lives to create a stable financial future for themselves and then give all their monies to a third party with little or no time spent on educating themselves on what to avoid, or what are the right questions they should ask to protect their finances. Like, What is the worst senario? What are the full charges? Do you get paid commission for recommending this fund? What are the risks compared to a traditional long established fund? Has this company had any history of suspended or frozen funds? and then ask what you have been told to be confirmed in writing. Summing up, you have as much responsibility for your finances as anybody else . after all some people would say “if you don’t care about your money why should anybody else” and spending a few hours every so often, to educate yourself to and gain some understanding could be better than spending months of finding out what has happened and why and maybe even years of regret for losing your hard earnt money.
Written by John Marks E.P.I.C