Investment fund option for Portugal Golden Visa is getting increased attention. Indeed, the inquiries are skyrocketing. As the minimum investment amount is going to rise from €350,000 to €500,000 in January 2022, investors are rushing in to take advantage of the current requirements.
Werner Gruner, Partner at Get Golden Visa, says that the rising popularity of the investment fund option is fueled by both external and internal factors. He also adds that “this investment route gained initial attraction in 2019, with growing demand from 2020 onwards. Funds will continue to be popular next year. Be prepared for the competition.”
The Effect of Travel Restrictions on the Funds
One of the main reasons for the shifting attention to investment funds is travel restrictions. Gruner says that as real estate investment typically requires physical inspection, the investors are opting for the fund option, which is easier to evaluate and screen remotely. It can practically be managed with the help of a professional advisor, unlike a house purchase, in which investors feel the urge to physically visit and see.
Other reasons include lower acquisition costs, tax efficiency, outsourced professional management, and investment diversification.
A good percentage of the fund investors are US citizens, who are generally familiar with venture capital funds and other similar financial investments.
Investors Prioritize Diversification More Than Before
Gruner explains that investors can diversify their €350,000 in multiple funds. He observes that more of their clients choose to allocate their investment across two or three funds. “They don’t want to put their eggs in the same basket so they diversify the risk and sector they invest in. They question the track record of the fund managers, the investment strategy, the diversification, maturity of the fund, if the fund is attracting only GV investors or other type of investors, the minimum investment amount, the expected fund IRR, check if there are annual dividends, and what sort of a performance fee the fund managers are after”.
Gruner adds, “Most investors prefer to work with local advisors such as ourselves because they know how crucial it is to have an independent professional on their side. We know most of the fund managers, as well as the funds inside and out, and our loyalty always lies with our investors.”
The Competition Among Funds Will Get More Aggressive in 2022
When the Portugal Golden Visa investment fund option was introduced, there were only three or four funds available. Now with more than 20 funds available on the market, the competition is fierce. According to Gruner, the competition is going to get more aggressive as new funds are going to be introduced. Fund investors are going to continue to diversify and deploy their investments in 2022.
About Get Golden Visa
Get Golden Visa helps investors and their families become global citizens by investing in residency and citizenship programs. Whether a real estate investment, a fund subscription, or a donation, they help their clients find the best solution that caters to their specific needs. Since 2014, they’ve provided more than 32,500 prospective investors with professional advice.
