It is a type of fund that is designed to replicate the benchmark indexes which are S&P, DowJones, Sensex, Nifty etc. Most popular index fund is Standard & Poor 500 index which tracks 500 US listed companies from various industries. It can be done by selecting the same member securities which constitute the benchmark index […]Continue Reading... Comments Off on Index Funds
Leveraged Buyout (LBO) is a term which is used to indicate the leverage or loan taken to buy out a company by the current management or employees or any other private equity firm. The key idea is to fund the cost of acquisition mainly by taking loans from other financial institutions rather than using own […]Continue Reading... Comments Off on Leveraged Buyout (LBO)
There are some disadvantages involved in Private Equity fund investment. They are mainly Private equity fund investments are very much liquid in nature and the investors can’t sell or buy their investment whenever they want. It requires a very high initial investment amount which only the very high net worth investors can afford. It requires […]Continue Reading... No Comments.
There are some advantages involved in Private Equity fund investment. They are mainly Private equity funds always invest with the intention of very high return over the long term. They are always considered as the long term money enhancer. They have a very low and positive correlation with the stock market which enables them to […]Continue Reading... No Comments.
Private Equity Funds have different characteristics and they are specified below with the importantly used terms. A private equity fund maintained by some experienced and capable investment professionals of a private equity firm. Most of the private equity firms are formed by limited partnership. The company has some main partners who run the company and […]Continue Reading... No Comments.