The enlightenment are consultants and other resources such as journals and information services industry. Closed-end funds offer securities investors are increasingly in demand. These include, for example, placement guarantee, equity capital deposit guarantees, completion guarantees as well as fixed price or maximum cost guarantees. While investors however be sure to what extent the benefit is hedging such risks in a reasonable proportion to the resulting higher costs. In addition, the creditworthiness of the guarantors should be always checked. Payout – and yield forecasting as well as initiator fees are less suitable as a criterion of comparison, since these are often not comparable due to different concepts or the quality of the management and higher fees that sometimes justified. Yield forecasts are often one of the Central instruments of marketing a project. But such bills will only have significance if realistic and conservative assumptions will be assumed.

Some initiators use various screws such as, for example, a high inflation rate, low liquidity, foreign currency loans or an initially slow foreign capital amortisation, the prospektierte return visually to embellish. In the long term but higher costs and risks threatening such measures. The fees is sure that the soft money, so the share of costs, for example, for the procurement of equity or the Fund concept to the investment, is not too high. As a general rule: the lower the percentage, the better. One of the main reasons why occasionally serious projects in the past have come to economic difficulties, is a high debt ratio. Although a positive leverage effect can be generated in favourable phases by high borrowing rates, in times of crisis and in less favourable development of interest this may change but to the detriment of the investor and reduce payouts.

Declining revenues can also lead to liquidity bottlenecks and result in a financial difficulties or even bankruptcy of a project at a high interest rate and repayment commitment. In principle therefore, that higher debt ratios only by a correspondingly high security on the revenue side are justified. About the AAD Fund discount GmbH and the AAD Fund discount blog AAD Fund discount GmbH is an independent fund placement firm based in the university town of Marburg. It offers investors the opportunity to acquire more than 9,000 mutual funds and virtually all closed-end funds at discount rates without subscription fee. In the AAD Fund discount blog refers to current as well as basic questions about the topics of closed-end funds and investment funds the General Manager Dr. Jurgen Hilp and lit them in economic and legal terms. Contact Stefan Gobel reel road 35037 Marburg Tel.: 06421-979-020 fax: 06421-933-570 blog.aad fondsdiscount.de