Premios – Smart Markets Rotating Header Image

April 25th, 2017:

Investment – Undertakings For The Collective Investment Of Transferable Securities

Modern investors remain steadfast with their research while aiming to find hidden gems.

It’s a hard task at the best of times, but there is one option which pops up again and again. It comes in the form of UCITS.

Here is more on why these funds are deemed as being intriguing investment options for investors.

Why is UCITS an Interesting Investment?

The UCITS funds were set up as a guideline for the European Commission. These funds would be produced and managed in Europe while being dispersed to investors on the open market. These funds wouldn’t be limited to European investors, but instead, would be made available to everyone across the planet.

The premise of doing this was to ensure a harmonious relationship could be maintained between European nations when it pertains to mutual funds.

The UCITS funds are set up to provide singular protection rights and are regulated in a streamlined fashion.

Benefits of UCITS

Here are some of the reasons UCITS continue to be useful investment options for investors.

1) Highly Regulated Funds

The primary reason investors are drawn towards these funds has to do with the regulations. These funds are governed far more than other investment vehicles. This ensures the laws are followed to a tee, and all service providers remain steadfast with their support.

This regulation is what ensures the funds stay in sync with the market.

2) Favorable Tax Treatment

Taxation experts illustrate these funds as being tax-friendly due to the regulatory treatment in the EU. With the taxation laws as they are, these UCITS funds can maximize one’s returns in comparison to some of the other investment options one might have.

3) Bi-Monthly Liquidity

The next benefit of UCITS comes in the form of liquidity. Many investment vehicles are not as liquid as one would want them to be. However, UCITS funds can be turned into cash/profit within two weeks as there is a bi-weekly requirement by law.

This provides investors with a “way out” if necessary.

4) Ideal for Small Investors

Small investors have reduced budgets and will not wish to take on unnecessary risk.

With UCITS funds, the small investor can even the playing field and get involved in creating a robust portfolio of their own. This can make all the difference for solidifying these funds and ensuring they remain steady at all times of the year. It also ensures small investors can join in.

Examples

Several UCITS funds are being offered on the market right now.

Over 75% of the investment market is featuring UCITS funds because they’re heavily regulated and remain under control. Investors desire security and these funds can offer it.

1) Diversified Equity Alpha Portfolio
2) Emerging Markets Growth Portfolio
3) European Value Portfolio
4) Real Asset Portfolio

These are the top-tier portfolios for investors looking to dive into the world of UCITS once and for all.

These are deemed as being high-grade, long-term options for those who are selective and wish for quality results moving forward. It’s a great starting point for those establishing their portfolio.

 

Interested in European Markets – read more about 5 Reasons To Invest In European Stocks.

Why Facebook Inc (FB) Is A Great Long-Term Investment Stock

The stock market is a terribly confusing place, and deciding where to go can be a perilous experiment especially for a beginner investor. Nonetheless, within the labyrinth, a few stocks pop up that hold a solid chance of being a forever investment, and are reliable through good and bad times. Facebook Inc. (FB) is a top contender under this respect.

facebook stock

In fact, difficult not to paint the stock in good light. In 2016, its shares were up 14 percent, which is approximately double the S&P 500 index 7 percent return in the same year. Since initial IPO in 2012, the Facebook stock has risen 213 percent, tripling the 69 percent return of the S&P 500.

Today, Facebook still manages to report stellar growth almost every quarter, owing to its dominance in social media usage, and ad spending. Facebook can continue to maintain the phenomenal run, and even gain more momentum in the future; here is why.

Facebook – Constant Innovation

Many investors have been expecting what would seemingly be the eventual slowdown of the social media giant’s growth, but they were recently disappointed. In its third quarter, after putting video first, the company has reported a 59 percent improvement in ad sales revenue. This accounted for $6.8 billion out of the total $7 billion in revenue.

Brilliant Founder

With an innovative and brilliant founder Mark Zuckerberg, and his proven track record, investors can rest assured that Facebook is in good hands as he knows where he wants to get his company. Keep in mind that such brilliant founders have tended to work exceptionally well for shareholders. For instance, companies such as Amazon.com (AMZN), Alphabet (GOOGL, GOOG), Netflix (NFLX), and Tesla Motors (TSLA) have had brilliant and innovative founders and excellent results.

Mobile Mastery

In this quarter of 2016, over 85% of all its ad revenue was from mobile, which is an improvement from 78% in the year before. As more consumers transition over to mobile platforms from their personal computers, the FB stock is ideally positioned.

Powerful Edge

Facebook essentially has a great 1.8 billion monthly active users, and the number is still growing. Many users find Facebook very addictive. According to experts, internet users spend more time on social media platforms than on any other digital activities. As such, Facebook is a very important global business channel. Every new person who joins the network adds more to its value, making more people want to join. This is the network effect where a service becomes much more valuable when more people use it.

Monetization Potential

Facebook now owns Instagram its only rival, and Whatsapp Messenger. Instagram has over 500 million active monthly users, though it still doesn’t contribute much to the breakneck pace of growth of Facebook. However, the platform is now increasing the number of ads, and its contribution should see more growth.

Besides Instagram, company owns Facebook Messenger, and WhatsApp Messenger, two massive messaging platforms. However, Facebook still hasn’t realized the monetization potential of these two and is strategically placed to dominate in the future.