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Who Can Invest in Alternative Investment Funds?

Ruby Layram Finance Editor Author expertise
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Alternative investment funds are growing in popularity all across the globe and in Europe in particular. Investing is a popular solution for raising money for certain goals or accumulating capital for a comfortable retirement. When deciding where to invest money online, many people choose alternatives today. This is because traditional assets require more specialized knowledge to invest in successfully. Because of such popularity, one question arises: who can invest in alternatives, and are there any restrictions? Read along to learn more about these investment assets.

People That Can Invest Using AIFs

The short answer to this question is that everyone can invest in alternative assets essentially. Of course, there are certain exceptions, such as people that have not reached the legal age or investors from countries not supported by specific online funds. Here is a list of people that might not be able to invest because of specific reasons:

  • Young people – if you are under 18, you will not be able to invest legally using European investment services.
  • Citizens from other countries – if you want to use a specific AIF to make your money online investment, make sure that your country of residence is supported. Online investment funds usually require using specific payment methods or being an EU citizen to make a donation.
  • Insufficient starter capital – depending on the investment solution, you might need to make a certain minimum investment. While certain platforms like Quanloop require investing one euro minimum, other services might need investments that start with one hundred euros. This is not an option for you if you cannot afford it.

As you can see, some classic restrictions concern most financial services, and pretty much everyone can invest via an investment fund.

Picking an AIF to Make an Investment

If you are uncertain about where to invest money online, consider the following criteria when choosing a service:

  • Return rate – the return percentage is extremely important as the average rate demonstrates how much money you can make by investing your capital.
  • Minimum investment – evaluate your starter capital and see how much money you are willing to offer for your first investments. Do not choose services with high requirements at first and learn through making smaller payments.
  • Risk planning – it is crucial to examine your risks and invest only if you are ready to take them. Risk plans can make it easier for you to invest more securely.
  • Payment fees – investment funds might have transaction fees and other charges. Make sure to read about the fees in order not to spend your money unexpectedly.
  • Liquidity – this is a criterion that shows how easily you should be able to get your money back. Often, people invest for the long term and have to pay fees if they decide to withdraw funds earlier.

Read about the fund of your choice thoroughly before investing to make the best decision.

Ruby Layram Finance Editor

Ruby Layram Finance Editor

Ruby is a Finance Editor who has 5 years of experience in the finance and cryptocurrency space. Ruby attended the University of Winchester where she received a BSc in Psychology. During her studies, Ruby developed an interest in financial psychology and began writing content around the topic on a freelance basis.  Whilst she was studying for her degree, Ruby spent time learning about personal finance, investing and trading. She has written content for The Motley Fool UK, Bankless Times and Cryptonary where she also worked as an editor. Her interest in cryptocurrency came about after writing a piece for The Motley Fool about the rise of CBDCs. Since then, Ruby has actively invested in the crypto market with a focus on long-term investing.  Ruby is also an experienced trader with good analytical skills. She has used a used a variety of platforms and tools to trade and has first-hand experience with many of the platforms that are featured on the Trading Platforms website.