Ashid Stable Growth
Real Estate Private Fund
Real estate has long been considered a promising and sound alternative investment option, and real estate investors have lots of other options when it comes to choosing investments, and they’re not all physical properties.
Real estate can enhance the risk-and-return profile of an fund’s portfolio, offering competitive risk-adjusted returns. In general, the real estate market is one of low volatility, especially compared to equities and bonds.
Investment Policy
Investment objectives
The objective of Ashid Stable Growth Real Estate Private fund is to provide a high level of income and moderate long-term capital appreciation. Total returns are generated from the rental income plus any capital appreciation that comes from holding the real estate assets over the period. Unit holders will then receive their returns, be it in the form of distribution or capital gains.
Investment Strategy
After the analyzing more than 17000 real estate data, we have come up with estimates that demand for housing, especially mid-range and standard housing, is higher than supply, and prices continue to rise steadily. The fund’s investment principal strategy is to reduce the risk and take profit from the real estate sector, that is including investing in high demanded residential construction projects.
Model portfolio
80% of the private fund’s portfolio will be real estate and the remaining 20% will be investing in highly liquid stocks and money market securities with low correlation with the real estate industry. 70% of the construction project will be investing in 2 projects to reduce the risk.
Expected return
The expected return of the fund portfolio is 26.3% annually. it is an estimated return before expenses. Also, we are expecting a total return is 125.5% in 5 years later.
Risk
An investment in the Fund could lose money over short or long periods of time. You should expect the Fund’s share price and total return to fluctuate within a wide range. The Fund is subject to the following risks, which could affect the Fund’s performance:
- Asset concentration risk, which is the chance that, because the Fund’s target index (and therefore the Fund) tends to be heavily weighted in its ten largest holdings, the Fund’s performance may be hurt disproportionately by the poor performance of relatively few stocks.
- Investment style risk is the chance that returns from the stocks of REITs and other real estate-related investments—which typically are small- or mid-capitalization stocks—will trail returns from the overall stock market. Historically, these stocks have performed quite differently from the overall market.
- Non-diversification risk is the chance that the Fund may invest a greater percentage of its assets in a particular issuer or group of issuers or may own larger positions of an issuer’s voting stock than a diversified fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Dividend policy
It will be decided by Unit Holder’s Meeting.
Fund expenses and service fees
Management fees and custodian expenses do not exceed 3% of the average annual balance of the assets under management. Property taxes are 2 percent per year, and property sales taxes are 2 percent of the sales price.
Purchase and sale of fund units
Unit rights will be offered in closed and the nominal price of unit rights is 5,000,000 MNT
