123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL » Investing---Finance >> View Article

Understanding Capital Growth Funds

By Expert Author: Kelly Leary

Funds tied to capital such as land – and not the stock market – are more affected by specific local conditions and benefit from location diversification.


A capital growth fund is any portfolio of investments that is assembled with the intent to generate an investment return. Typically, those returns are reinvested.



Of course, achieving capital growth – to sell at a price that is higher than the price paid on the investment – is a goal, not a guarantee. But the chances of success are much enhanced by working with professional capital growth professionals who truly know the assets that are being invested in. The collection of investments within the fund and the market conditions that affect them determine whether a capital growth fund lives up to its name.



Capital growth funds based in real estate are different from, say, those tied to the stock market. Fund managers look at the distinct and unique combinations of land tracts to maximise certain factors, including local market conditions that would increase or decrease the value of each particular piece of property. A balanced capital growth fund in real estate would also be diverse across many geographical jurisdictions such as counties, as a local political structure can influence how land is used and zoned.



Also, diversification in the likely end use of the land (residential versus commercial, for example) can help the capital growth funds investor hedge against disruptions in any particular sector. The expertise of capital growth fund managers in land acquisition and Land planning is therefore essential for developing valuable real estate-based capital growth funds. Experienced fund managers focus on the most profitable part of the land development process: acquiring sites that have been identified to come forward for residential or mixed-use development but do not yet have detailed plans or permissions. Lucent then works with its own in-house team of specialists augmented by a select group of advisors to produce sustainable "development-ready" land sites before selling to house builders or other development companies.

Total Views : 92Word Count Appx. : 331See All articles From Author

Investing / Finance Articles

1. The Best Social Security Retirement Strategies Can Secure Your Future After Retirement
Author: lauriejacckson

2. 5 Non-traditional Loan Facilities Offered By Vancouver’s Best Mortgage Brokerage Firms
Author: Robert Hensel

3. Why Timing Your Fixed Deposit Rates Alongside Festive Seasons Is A Must?
Author: Mayur Sheitty

4. Rate Cut: The Right Time To Purchase A Home
Author: Mayur Sheitty

5. Can The Size Of Your Business Affect Sme Loan Rates?
Author: Mayur Sheitty

6. Why Should You Avoid Applying For Multiple Home Loans?
Author: Mayur Sheitty

7. Virtual Cfo Services In Usa
Author: IBN Technologies Ltd

8. What Are Digital Personal Loans?
Author: veena kumari

9. How You Can Utilize Funds From Personal Loans
Author: veena kumari

10. Special Investment Plan For Special Child
Author: FundzBazar

11. Clear Your Mind, Embrace Price Action Trading
Author: John Arnold

12. Aquel Alquiler Coche Aeropuerto Alicante Metaforiza Aquel Gas Natural Filósofo Circa Este Engendrami
Author: Verena Vardon

13. De El Alquiler De Coches En Alicante Agrede Un Cornete Lóbrego, Un Perezoso Unimisma El Moquete Zar
Author: Jade Schroeder

14. Amén El Alquiler Coche Barato Alicante Festona El Cuadriguero Monosílabo, Un Prognatismo Se Mitiga
Author: Ella Robeson

15. Making The Right Investment
Author: Nithish George

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: