Although now functioning secondary markets exist, a sell and price the shares before the expiry of the term of the Fund can not always be guaranteed. In addition to the limited fungibility the risk of total loss basically in business investments. But also distributions can temporarily fall out at negative development or correspond to not the forecast course. Against this background, investment in closed-end funds should only be made if a worst case scenario for the investor not in financial distress. Basically the investors before choosing a product should ask yourself whether the risk structure of a fund to own risk-taking fits. According to a speculative project not to recommend a distinctly security-conscious investor.
Is important in this context also, not unilaterally moved the total asset structure of the investor by acquiring a closed Fund. Recommended is a maximum percentage of closed-end funds in the total portfolio between ten and twenty percent, which is to ensure a sufficient diversification, to reduce the overall risk. Despite the increasing complexity of closed models of participation, the investor on the basis of some central criteria can filter out the main data for the evaluation of the project. In the prospectus the interested can find a detailed description of the model of the Fund, the investment objects and their performance characteristics, finance and the legal and fiscal fundamentals. Necessarily should make investors a positive balance of the initiator and they also actively ask because she represents the successes and failures of previously established projects in its historical context.
The insight into annual business reports, is also desirable to obtain current information and to review the use of funds, as well as the economic development of the participation. In principle, that any ambiguity before selecting a fund should be eliminated. This applies in particular for specific risks, which can vary with the variety and the width of the offers.