The basic activity principle of shared investments
An investor can freely choose a particular property or a company planning to invest in. There is a definite minimal investment amount for every investment unit as well as a common sum/value.
It means that to purchase one investment object several investors are involved in – each of them can choose the investment volume to invest, but it should not be less than the minimum defined by the Union Invest. Likewise it is possible to choose the investment risk – the Union Invest offers guaranteed profit for each investment object in accordance with its liquidity and demand in the market, or the investor can choose to follow the increase of a concrete object value himself and to receive real profit.
Example No 1
The unit of investment is a residential property in Riga and its value is 1 000 000 EUR, the minimum determined investment is 50 000 EUR. This amount includes also a developed and approved renovation project, which provides its division into several apartments and equipment of SPA centre in the basement. After renovation it is planned to sell the project managing to do this in 3 years terms. The predictable selling price after the renovation by selling the house by separate apartments is 1 700 000.
In this case the investors are guaranteed total profit in the amount of 700 000 EUR or 70% irrespective of the market fluctuations and real selling term. If the investor has invested 50 000 EUR, then his guaranteed profit is 70% or 35 000 EUR, which can be divided into annual payments (with a duration of 3 years) with the payment of the basic amount in the end of the term. It means that in such case the investor receives 11 667 EUR each year and the invested 50 000 EUR – in the 3rd year. This way it is possible to avoid the risk and legal complications, which are unavoidable when purchasing the real estate property in a traditional way.
The investor can also do the diversification of his own investment portfolio and invest in the fast-growing or stable companies. The Union Invest offers here stable profit interest, too, but one shall take into consideration that unlike the real estate property this investment sector is more risky but still with greater chances of development. The Union Invest offers to develop the most appropriate investment portfolio for the needs of each investor by balancing the risk and stability.
Example No 2
An investor has decided to invest 100 000 EUR in different sectors, he desires to get the profit within 2 years avoiding an unnecessary risk. The experienced experts of Union Invest can make the most appropriate portfolio taking into consideration his wishes and interests. An investor also can choose an object for investment himself. In this case it is sensibly to invest a part of this sum in a stable real estate, for example in an exclusive house for 40 000 EUR in some tourist resorts that will ensure safety.
To get maximum profit within 2 years, which is relatively short period of time, it’s advisable to invest in the realization of innovative ideas, for example such as social internet project, it’s 40 000 EUR. It can bring profit comparatively soon. The rest 20 000 EUR can be invested in other stable working companies with a high level of safety. For example, in a year the price of the property increases up to 50 000 EUR, the value of innovative project has become 70 000 EUR and at the same time the investment in stable working companies bring 1000 of pure profit, so a common sum has reached 25 000 EUR – so the sum of whole portfolio has become 145 000 EUR meantime being guaranteed.