Cactus Personal Finance

Hello everyone! Welcome back to my page and today I’m going to talk about private funds.

As per usual, this is not financial advice. If you’re unsure about anything, it’s worth seeking advice from a regulated financial advisor.

In this post I’ll try to explain and clarify what private funds are and it means inside an ISA.

Private funds are funds accessible to wealthy individuals or sophisticated investors. Recently some voices argued that private funds should be accessible to retail investors via ISA accounts.

In this paper I’m not going to talk about the key takeaway worth noting.

Here’s the key takeaways:

• Higher costs.
  
• Big variation in performance.
  
• Unregulated funds.
  
• Cash is not available quickly, it can take up to several months and even years to receive the money back.
  
• Transparency in valuation. Private funds don’t trade daily and it can take longer time to see how much is the investment worth.

For retail investors the most important thing to keep in mind is that money is kept away for longer time.

Several investment managers raised concerns about the risks involved for retail investors.

I hope you enjoy reading this paper.