If a film fund investment option?

If a film fund investment option? While investment in principle by a lower risk because of the stronger scattering as compared to investment in a single (or few) values excel, closed-end funds generally adheres to the stigma of severe tradability. Not entirely wrong, but it could invest in a closed-end fund variant to be quite an interesting option.

A classic example in this context, Film Fund Business. How can a glimpse of the investor invests his money in various media events such as film productions or musicals that achieve due to the distribution of these productions or broadcasts of the returns (so at least the assumption …). When the capital was collected from all investors, the fund is considered closed. As a rule, film funds have a maturity of five to ten years. The argument mentioned in the first paragraph of the heavy Vesting does here, an early sale is very difficult and, if feasible often associated with losses.

Anyone who invests his money as an investor in a closed fund option, legally limited partner is a GmbH or Co. KG. The investor thus liable for any risks or even a total loss. To what extent a funding commitment is given depends on the individual offer, but in any case refer to the prospectus.

Popular film funds were in previous years due to the high loss allocation – then could the losses, which amounted to 100% of deposits will be set off against other income, which could, of course, the personal tax liability will be reduced. This possibility of the tax credit does not now what media fund of course makes it less attractive. Losses can currently only be recognized if they come from similar investments, such as other media fund finance.

The bad reputation which attaches to this particular form of closed funds is through a lot of bad investments of recent years caused. Many investors invested in films, which provided little revenue, the promised return had to be written off. Who wants to invest his money in Film Fund should inform themselves in any case before carefully about the company behind the offer (previous activities, achievements, reputation, etc.). Actually, of course, but sometimes just did not: The prospectus should be read completely and thoroughly, until the investor really understands what he is risking his money.