The launch of GV Funds
Today we will launch the third, and the last module, at least for the time being. GV Funds are a very neat investment product and they will see a lot of improvement over the course of the following years, mainly because of the increasing list of lucrative assets.
Since there still might be questions about the mechanics of GV Funds, we will try to explain them as simply as possible.
GV Funds 101
GV Funds work in a way that is very similar to mutual funds; such funds give small or individual investors access to professionally managed portfolios of equities, bonds and other securities.
GV Funds are portfolios of multiple assets, gathered and chosen by the manager. In contrast to investment programs, GV Funds don’t require active participation from a manager necessarily. The profit in GV Funds is achieved from the organic price growth of assets included in the fund, and not by trading activities of the manager.
In order to clear up some of the questions you might have when starting to use GV Funds, let’s try to answer some of them right from the off.
Questions and answers
Q: How do I invest in a GV Fund?
A: The investment process is similar to an investment in the reporting period: you can top up your Genesis Vision account balance using BTC/ETH/GVT, and then use the GVT you to invest in your chosen GV Fund. To do that just click “invest”, while you’re on the specified GV Fund page.
Q: Do I need to wait for my GVT investment request to be executed, or is the investment instantaneous?
A: No, GV Funds don’t have reporting periods, so when you invest your GVT into a GV Fund, your investment is accepted almost immediately. The same goes for withdrawals.
Q: What are the target and current percentages? & What do they actually mean?
A: Due to the changes in the price of the underlying assets included in the fund, the proportion of the allocated funds might change over time. The desired percentage selected by the manager is called “target”, while “current” shows the current allocation of funds. All of the funds are automatically reallocated each week to meet their target allocation values.
Q: What are the GV Funds fees?
A: GV Funds have two separate fees, one of them being the entry fee and the other one being exit fee. Both fees are pretty self-explanatory: entry fee is charged from the amount that you are investing in the GV Fund, and the exit fee is charged upon your withdrawal amount. Starting in January, the platform fee of 0.5% will also be charged from every investment in investment programs and GV Funds. Just like in the case with investment programs, the managers are able to select the sizes of their fees for themselves (with maximum fee being 10%).
Q: What are the benefits of creating a GV Fund for a manager?
A: In order to set up a GV Fund, a manager is required to invest 50 GVT of his own funds. Once the GV Fund is up and running, a GV manager will be able to profit from the fund on the same basis as his investors, with additional profit coming from entry and exit commissions.
Q: What’s the best way to choose a suitable fund?
A: Pay close attention to all of the data that is provided. We need to warn you, that almost all of the ratios will not be able to give you sufficient information about the performance of the fund, for at least the first three months of the GV Fund history. Always pay attention to the fund’s chart and its overall structure.
Q: What changes can a manager make to his/her own fund?
A: Once in every 30 days a manager can reallocate his fund, meaning that he can change the target percentages, remove or add new assets. A manager is also able to edit the fund, changing its title, description and picture.
Q: How is GV Funds profit formed?
A: When you invest in a GV Fund, you basically purchase all of the assets, that are included within it. The profit is received from the organic price growth of the assets in the GV Fund. Once the price of the assets goes up, so does the price of your share (or unit). When an investor decides to withdraw his or her investment, all of the funds in the fund are sold off, and the resulting profit is converted back into GVT.
Q: Why is the withdrawal amount reflected as a percentage?
A: Withdrawal from GV Funds is made as a percentage because it is almost impossible to calculate the exact investors share upon the time of withdrawal, due to all underlying commissions and conversions that will take place upon submission of the trades, ready for withdrawal.
In a nutshell
A skilled manager has created a profitable portfolio of different assets. He went to the exchange and actually purchased all of the assets he chose. An investor wants to have a copy of such a profitable portfolio, what should he do? He can go through all of the hurdles required to purchase all of those assets from an exchange by himself, or…
Or he can simply invest in a GV Fund. When an investor does that, his GVT is converted to every other asset that is listed in the fund, basically purchasing everything from the portfolio at once. When an investor decides to cash out, all of the assets are sold off and the profit is converted back to GVT.
Since the mechanics require a lot of automatic purchasing of assets, we need to roll out the third module very smoothly. This is why at first you will only be able to invest in funds 50 GVT total per day. This daily total will be revised each week and will increase.
The more the merrier
The number of assets that are available in GV Funds will also inevitably increase. Last week you voted for the assets you would like to see included, and we have implemented the top 10 of them. We will continue adding at least 10 new assets per week. In the beginning, the assets will be restricted to crypto only, but in the future, a manager will be able to create a Fund, that consists of crypto, shares, metals, bonds and more. Once all of the derivatives are available within the confines of the GV Funds, they will become even more appealing.
Who knows what our managers will be able to achieve by combining such a wide variety of derivatives! We will have to wait to see, but for now on, the GV Funds are live and waiting for its first investors!
Undeniably the crypto is undergoing a rough time at the moment, but who knows, it just might be the best time to buy in!
Until the next time, Visioners!
