The risk/reward

UCITS (Undertakings for Collective Investment in Transferable Securities) is a regulatory framework of the European Union for investment funds, which allows them to be sold across the EU based on a unified set of rules. UCITS funds are designed to provide a high level of investor protection, including requirements for diversification, liquidity, and transparency. Due to this regulation, UCITS funds are popular among investors. They offer relative safety, are strictly regulated, and are easily accessible on international markets.

Underwriting is the process in which an investor or investment firm agrees to purchase newly issued securities, such as stocks or bonds, during their initial public offering (IPO) or other forms of issuance. Underwriting involves a commitment to provide capital to the issuer in exchange for securities. In the case of a public securities offering, underwriting is often carried out by investment banks or financial intermediaries, who then offer the securities to the public or institutional investors. The underwriting process allows the issuer to raise the necessary capital for their business or investment plans.

Valuation multiple is a financial indicator used to assess the value of a company or its shares based on certain economic parameters. This multiple is calculated as the ratio between the value of the company (or its shares) and a selected financial metric, such as earnings, revenue, or equity. For example, the P/E ratio (price-to-earnings ratio) compares the market price of a share with its earnings per share, while the P/B ratio (price-to-book ratio) compares the market price of a share with its book value. Valuation multiples help investors assess whether a company is overvalued or undervalued in relation to its financial performance and market standards.

Venture capital (VC) is a form of financing where investors provide capital to early-stage companies or innovative projects with high growth potential. It is a risky investment because these companies are often in the early stages of development. However, in case of success, they promise high returns. Venture capital funds typically acquire an equity stake in the company and participate in its management and strategy.

Volatility is a measure of the fluctuation in the price or returns of an investment asset over time. High volatility means that the price of the asset can change significantly in a short period, indicating a high level of risk and uncertainty. In contrast, low volatility means that the price of the asset moves relatively steadily. Volatility is often measured using the standard deviation or variance of the asset's historical returns. In the investment world, volatility is an important factor in assessing risk and can influence investment decisions and portfolio management.