- Financial dictionary
Qualified investor
Qualified investor
A qualified investor is an individual or institution that meets specific financial or professional criteria, allowing them to invest in riskier or specialized investment products such as hedge funds, private equity, and certain real estate funds. These criteria typically include the size of the investor's assets, income, and investment experience.
Related terms
| Term | Definition |
|---|---|
| Qualified investor fund | A qualified investor fund is an investment fund designed for investors who meet certain criteria and have sufficient financial resources and experience to handle a higher level of investment risk. These funds are often less regulated than regular investment funds, allowing for greater flexibility in terms of investment strategies and opportunities. Qualified investor funds can invest in a variety of assets, including riskier or less liquid investments. These funds are typically managed by professionals and may offer higher potential returns, but also come with higher risks. |
| Real Estate Fund | A Real Estate Fund is an investment fund that focuses on investments in real estate and related assets. These funds can invest in various types of properties, such as office buildings, commercial spaces, residential complexes, or industrial properties. Real estate funds allow investors to gain exposure to the real estate market without the need for direct ownership or property management. These funds can generate income from rental payments as well as from the appreciation of property values. They can be open or closed-ended, with open-ended funds allowing for regular buying and selling of shares, while closed-ended funds have a limited number of shares and do not allow regular buying or selling. |
| Reference currency | A reference currency is a currency used as a basis for measuring the value or performance of other currencies or financial instruments. In international trade and finance, it is often used as a standard for comparison and conversion of values. For example, in many financial transactions and calculations, such as exchange rates or price indexes, the US dollar, euro, or another stable currency may be used as the reference currency. The reference currency provides a foundation for determining relative value and facilitates international trade and investment. |
| Retail investor | A retail investor is an individual investor who invests their personal financial resources in various investment instruments, such as stocks, bonds, funds, or real estate. Retail investors are often less experienced compared to institutional investors, such as banks or investment funds, and their investment decisions are typically less complex. Retail investors generally invest through brokers or online investment platforms and may have various investment goals and strategies. |
| Robo-advisory | Robo-advisory is a service that provides automated investment advice using algorithms and software platforms. These services utilize technology to analyze financial data and create personalized investment plans without the need for a human advisor. Robo-advisory platforms typically offer low fees, easy access, and automated portfolio rebalancing. This makes them an attractive option for individuals seeking a time- and cost-effective investment solution. |