Intermediaries are entities or individuals that act as intermediaries between buyers and sellers in a financial transaction. In the context of collective investments, intermediaries typically include brokers, financial advisors, investment managers, custodians, and other service providers who facilitate the buying and selling of shares or units in collective investment schemes.
Collective investments, also known as pooled investments, are investment vehicles that pool money from multiple investors to invest in a range of financial assets. Examples of collective investments include mutual funds, exchange-traded funds (ETFs), and hedge funds.
Intermediaries play a crucial role in collective investments by providing investors with access to a wider range of investment opportunities, as well as expert advice and support in managing their investments. They may also help to reduce transaction costs and provide greater liquidity by facilitating the buying and selling of shares or units in collective investment schemes.
However, intermediaries also introduce additional costs and risks to the investment process, including fees and commissions, conflicts of interest, and the potential for fraud or mismanagement. As such, investors should carefully consider the role and impact of intermediaries when making investment decisions in collective investments.
What is Passion funds?
Passion funds are investment funds that focus on supporting startups and companies that operate in a specific industry or sector. These funds are typically managed by individuals or firms who are passionate about a particular industry or sector and are looking to invest in companies that align with their interests.
Passion funds can focus on a wide range of industries, such as technology, healthcare, clean energy, real estate, and more. The fund manager’s expertise in a specific industry can provide value to the companies they invest in, as they can offer insights, connections, and resources to help the companies grow and succeed.
Passion funds can be a good option for investors who are interested in investing in a specific industry or sector but do not have the time or expertise to research and evaluate individual companies. By investing in a passion fund, investors can benefit from the fund manager’s expertise and potentially gain exposure to a diversified portfolio of companies operating in their area of interest.
