At Yieldfund, everything we do revolves around creating value for both our company and our investors. While we strive for solid financial growth, it’s equally important to minimize risks for our investors. The success of our strategy lies not only in the returns we generate but also in how we build our equity (EV) and use it to provide greater security for our investors.
In simple terms, the more net profit we make, the higher our equity grows. This equity acts as a buffer, increasing the fund’s stability and offering investors a higher degree of security. Let’s explore how this approach works and why it’s so important for minimizing investment risks.
Equity, or EV, is the difference between the value of a company’s assets (in this case, the investments in the fund) and its liabilities (debts and other obligations). It’s a key measure of financial health and plays a crucial role in a company’s ability to absorb risks. The higher the equity, the larger the buffer to absorb potential losses without affecting investors.
For example, imagine managing a fund with a total value of €1 million and an equity of 20%. This means the fund has €200,000 in net equity, while the remaining €800,000 represents liabilities or risk. In this scenario, the investment risk is 80%.
As our equity grows, this ratio improves: the buffer increases, the chance of losses decreases, and the risks for investors become smaller. This is the cornerstone of how we prioritize investor security at Yieldfund.
A critical aspect of our strategy is balancing significant growth with strict cost control. While these goals might seem contradictory, it’s a conscious decision designed to ensure both the growth and stability of the fund.
Why keep costs low? Every euro saved on operational expenses is another euro we can use to strengthen our equity. By minimizing costs, we generate higher net profits, which we reinvest into the fund to increase equity. This not only provides investors with greater security but also ensures the fund’s long-term health.
Additionally, this approach avoids wasteful spending on areas like excessive marketing or unnecessary overhead. Instead, we focus on generating stable returns and reinvesting them strategically to promote growth and reduce risk.
At Yieldfund, we take a long-term view. Our goal is not just to generate profits today but to create a sustainable and stable foundation for the future. By steadily building equity, we ensure the fund can continue to grow while protecting investors from excessive external risks.
This approach allows investors to grow their capital over time, with the confidence that their investment is being managed responsibly and with their security in mind.
The Yieldfund strategy is simple yet effective: by building equity, we minimize risks for our investors. By keeping costs low and reinvesting profits into the fund, we increase equity and strengthen the financial stability of the platform. This provides investors with a solid foundation and assurance that their investments are protected from unnecessary risks.
As we continue to grow and strengthen our equity, Yieldfund ensures that investing is not only profitable but also secure and reliable. This makes Yieldfund a trusted partner for those seeking sustainable growth and peace of mind in their financial journey.
Ready to make your dreams of receiving high returns come true? Invest in Yieldfund today. After a one-time investment, we’ll do the rest so you can sit back, relax and watch your income grow!
Disclaimer: The content of this article do not constitute financial or investment advice.
Entry price
98.2800
Exit price
97.7200
Entry price
97.7800
Exit price
97.2200
Entry price
0.0168
Exit price
0.0167
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