Investment Funds on the German Market

Résumé du document

Investment funds or private equity have to invest in societies. A society will be selected with several criterias. Depending on objectives, funds will be more or less specialized. For example, venture capital funds, capital development funds, LBO funds are funds that correspond at several steps of a corporate business. The risk of this fund is really high. That means that with limited investments they enable to create big amounts but with involving risks. LBO means leverage buyout. It is a control acquisition of a society by one or several specialized investment funds. The majority of the financing is made by debts. Investment politic is more based on financial analysis of corporates than on analysis of markets environmental politics. In other words the choice is made on the quality, corporate with a really good position comparing to the concurrence, with good profitability. It means that you can acquire a big discount when buying it.

Extraits

[...] Scheme 7 What is relevant too, are the consequences on the demand because of national state of mind differences. So German fund assets per head count about 9000 fund asset, that is more than twice less than in France (22000 funds assets per head) and tree time less than in USA. But German people are still to realize that investment funds could be a solution to obtain future personal provision that could be used for education for example. That's why, the state is not in last position according to fund asset number per head and obtain better result than Spain and Italy. [...]

[...] In return they can benefit of advantages on taxes. In France most of the LBO funds have chosen this form of investment Mutual Funds Company This fund is exclusively reserved to workers of a corporate or group of corporate Growth and Income Funds Managers of them are looking for stocks giving long term growth and dividends Fund of Funds Performance of funds of funds is linked to performance of other funds. Managers have the challenge, when they work with these, to select the most performance fund and they don't take care of the other. [...]

[...] It is very difficult to realize such a performance several times. In fact, this type of stock or sector that can enable to have good profit, includes that they have very variable yields too. Funds managers that are trying to follow this strategy are confronted to another problem. It more difficult to do better yield than market, because funds, and moreover known funds, contain so much quantity of stocks, that even if they try to have good performances, chances to obtain these are very low, so these funds are diversify. [...]

[...] Risks are classified on this rule. risks/benefit report Monetary State loans products Bunds Stocks Benefit Sure that this graphic is a caricature, but it shows clearly that managers have the same status as an individual and so have same risks and same chance to release profit. Compromise between profit and risks are most of the time presented as a choice between growth and incomes. Then investor will choose a type of funds adapted to demand Products Investment funds are never randomly invested; there is always an investment strategy. [...]

[...] 2006 investor are “obliged” to withdraw about 7.4 billion from openended funds because of the suspension of the redemption6 by manager. A credit crunch (also known as a credit squeeze) is a sudden reduction in the general availability of loans (or credit), or a sudden increase in the cost of obtaining loans from banks. (Wikipedia) 5 Volatility most frequently refers to the standard deviation of the continuously compounded returns of a financial instrument with a specific time horizon. It is often used to quantify the risk of the instrument over that time period. [...]