Further selection criteria

These developers carry out an analysis of individual brokers, taking into account aspects such as:

• Taking care of the security of entrusted finances.
• The degree of development of the offer of investment tools.
• The amount of educational materials provided.
• Costs associated with investing
• And above all, the broker's financial performance so far broken down different forms of investment.

On the other hand, in the case of choosing an investment fund, the criterion of dividing the funds according to the type of assets to be purchased is important from the point of view of the entire financial future of the investor. These are alternative funds operating within separate sub-funds. And according to the analysis of the division, we can distinguish among them such as:

• Commodity Funds
• Absolute rate of return.
• Real estate funds.
• And securitization funds.

Commodity Markets Funds

Commodity funds invest at least 66% of their assets in commodities or financial instruments presenting the realities of commodity management. And these can be financial instruments linked to gold, silver, industrial metals, energy resources (oil, gas) or agricultural commodities. We explain all these aspects in the latest training at Webinar Universe. However, they can also invest capital in financial instruments linked to commodity markets, such as commodity stocks or commodity derivatives.

Unfortunately, there are many differences in performance between funds investing in instruments linked to the price of a given commodity and funds investing in shares of mining or production companies, as the latter group of funds is characterized by a high degree of volatility in the effects achieved in relation to the first group of funds.

This state of affairs is influenced not only by the price of the raw material itself, but also by the prices of energy necessary for extraction and production. Tax regulations, as well as administrative decisions in the form of concessions issued. Therefore, when deciding to invest in commodity funds, you should be well informed whether your preferred fund actually invests in raw materials or in mining and processing companies.

Absolute Return Funds

A characteristic feature of absolute rate of return funds is the pursuit of profits regardless of market conditions, which is possible thanks to the use of a highly flexible investment policy. Cash in this type of funds is invested in both classic assets such as shares or bonds. As well as in currencies, derivatives, commodities and commodities.

The investment concepts of this type of funds allow for strategies that involve, among other things, taking both long and short positions on the stock exchange. Using the market timing strategy, i.e. quick profit. It is a technique that involves the continuous buying and selling of financial instruments based on predictions of market directions based on data resulting from technical analyses carried out using stock market indicators and economic data. The use of arbitrage, as well as macroeconomic trends. And leverage giving exposure of more than 100% of the value of the asset. Absolute return funds are subject to high investment risk. Therefore, before making a decision to invest, it is unquestionably necessary to analyze in detail the rates of return achieved by the selected fund in various time horizons, from quarterly to five-year.

Comparing the fund's performance with a stock market index makes it possible to assess the fund's effectiveness both during favourable market conditions and in downturns. We have covered this topic in detail at Webinar Universe.

Real Estate Funds

As the specialists from the training platform point out, these are funds which, according to the Polish letter of the law, exist only in the form of FIZ funds. They issue investment certificates in a fixed number and their purchase is possible only during the duration of the issue, by way of public subscription.

They invest at least 80% of their financial resources in the real estate market. These are primarily ownership rights to land properties as well as buildings and premises with a predominance of office space, warehouses and logistics halls. However, the investment portfolio also includes residential units, usually of a higher residential standard. It can also be shares in co-ownership of real estate. The second type of investment is indirect investment, which consists in the purchase of shares in companies operating in the real estate sector.

Due to the nature of the investment portfolio, real estate funds belong to the group of long-term investment funds with a time horizon of more than 5 years. On the other hand, the profits generated in this type of funds come both from the sale and increase in the value of real estate, as well as from the rental of premises.

Securitisation funds

Securitization funds belonging to the group of closed-end funds are a special group of funds investing in receivables such as debt securities, deposits of domestic banks. Money market instruments and derivatives. Securitisation funds are divided into two sub-groups:

• Standardised funds
• And non-standardized

The first group of funds is obliged to invest at least 75% of their cash in one arsenal of receivables. Non-standardized ones, on the other hand, are obliged to place mines. 75% of the capital in:

• certain receivables,
• securities incorporating cash receivables (up to 25% of net assets Fund)
• Entitlement to Certain Claims.

Securitization funds issue certification certificates in a limited amount. On the other hand, participation in them is not limited by any provisions of the Act on Funds. However, in the case of non-standardised funds, only the following may be participants:

• Legal entities.
• Organizational units without legal personality
• And if it is allowed by statute, natural persons, provided that the issue price of the certificate is at the level of EUR 40,000.

A wide range of investment funds can cause confusion and confusion, which undoubtedly makes it impossible to make an optimal investment decision. Certainly, this is a selection that requires extensive knowledge related to the functioning of individual funds and the associated degree of investment risk. If you lack experience, a good solution to help you choose the right fund may be to consult an experienced investment advisor. As with the training on Webinar Universe, however, you should not forget about the choice of an intermediary institution in transactions with the fund. Its choice also has a huge impact on the profitability of the investment and the investor's financial future. In this case, it is worth trusting Forex brokers, because they are institutions whose activities are directly related to the world of investments.