My Take on Econ

So today I will be talking about investment funds Venture Capital Funds Hedge Funds Venture capital is a method of benefitting smaller start-ups by investing money into them. This is so that the business can use the VC’s investment to upscale their business, this allows the VC to make a profit as the business grows . Venture Capital may possibly the most difficult type of investing to succeed in as the Kauffman Foundation stated that 62% of venture capital funds fail to exceed stock market returns. Let alone the substantial size of investment required, which is anywhere between $1 Million and $5 Million. Meaning that it would be practically impossible for individuals who don’t fall in the Ultra-high-net-worth bracket to invest using this strategy. On the other hand, there are very high returns as The National Bureau of Economic Research has stated that in VC, 25% is the average return per investment. The top quartile of VC funds have an average annual return ranging from 15% to

 There are a variety of investment types, I am not talking about crypto currency but more about traditional, predictable investment, for example: ·          Equity ·          Bonds ·          Property What is Equity ownership? Equity is when you purchase a miniscule fragment of a company, therefore having ownership in the losses and profits the company made. If a certain individual or company owns large amounts of equity in a company, they become a shareholder. The owner of a business is simply the person with the largest amount of equity in a company. For example, Elon Musk is the largest shareholder of Tesla and thus the owner of the business. Stock is just traded equity. How do investors assess whether they should invest? They first judge which of the companies are worth investing in by looking at their finances (oversimplification, too much information for this blog). Then they investigate whether the equity is a value equity or a growth equity. How are they differe