Pooled investment vehicles, which are typically large investment funds built by aggregating relatively small investments from individuals, provide an opportunity for non-wealthy investors or people who want to invest only a small amount of capital to participate in investments otherwise available only to sophisticated investors or financial institutions.Lumentrades in line with other investment strategies offers this service.
In this type of investment, multiple investors bring their money together to gain certain advantages they would not have as individual investors. This helps an investor gain much more profits than if he decides to invest over the same period of time. Investors who join a pooled investment vehicle typically enjoy the economies of scale a larger fund value offers. The group of individual investors are all stakeholders in every investment the fund makes, in proportion to the size of each individual’s investment in the fund.
The Lumentrades pooled investment vehicle is more like a Private Funds service since we encompass a range of investment strategies including but not limited to hedge funds, mutual funds and private equity funds. One of the advantages of using this strategy as an investor is that investments made using a pooled investment vehicle (PIV) are generally charged less in trading costs and also offer professional management and diversification. The gains made from a particular PIV is always shared among all investors at the end of every quarter. Any investor who is a part of a PIV is totally free to opt out with all profits accumulated over the period of membership at any time he wishes to leave. No additional fees will be charged to him on account of this.