Investment Fund Survival 101

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This week, I want to explore an important topic: fund survival.

Let me ask you a question. What protection do you have in place for when the unexpected happens in the financial markets? 

Recent history is littered with examples of severe financial shocks, including the financial crisis of 2008 and the ongoing COVID-19 pandemic.

These events put significant pressure on not just the financial markets, but also the institutions that participate in them.

Consider this scenario. What happens to your fund if your broker or bank goes out of business? It’s an unlikely scenario – but you need to be prepared for it.

Practically, this preparation comes in the form of diversification. Here are a couple of things every broker can do:

  1. Use two or three reliable brokers

2. Open multiple bank accounts.

As a fund administrator, IFINA is well placed to help you diversify your service providers and protect your fund against the unthinkable. If you need more advice, please do get in touch.

Do you want to create your own Investment Fund?

If you want to create your own Investment Fund, just email me. I’d be happy to talk you through how it works in further detail.