There is such a conception in investment field as pool. Pool is an organized association of like-minded people, within which every participant gets an opportunity to buy shares (pool ratios) at an extremely low price, then all the funds are accumulated on one account; which is managed by a certain trusted person. The conditions of depositing and income distribution are particular for every pool.
Initially, organization of pools started during the full bloom of HYIP industry, so-called general funds were organized where all those who wanted chipped in together and after a collective voting they organized their own investment portfolio. Amount of all participants’ investments allowed to get a significantly higher interest and together with that it reduced the risk of losing a big part of the capital. The popularity of such organization grew, pools also started to expand. Investment associations covered the area of trust management and even stock market. Such public “initiatives” have many advantages and they are in a direct relationship with PAMM-Accounts. What does participation in a pool give us as investors?
- Low barrier of entry. An account held by trader N attracted your attention, but minimum amount of investment is $1000 while you have only $100. You join forces with a group of other investors and easily get the required limit, and you are satisfied with the income of a profitable trader. Diversification of investments. For investor it is much more favorable to distribute that $1000 amongst several profitable traders than invest the whole amount in one, potentially profitable account. Except the factor of reducing risks, there is one more moment. As a rule, distribution of income, according to the offer, takes place depending on the investor’s deposit size. For example, with the deposit from $50 to $100, you can count only on equal distribution 50×50; in case when investor’s deposit is $1000 and more, trader asks for a less remuneration, for example 40×60. The gain is obvious. Collective management. In most cases, every single pool is attached to a certain account. But there are pools whose organizers are busy with formation and control of entire investment portfolios. By combined efforts of participants, the most profitable options are chosen, and the decisions are made about reinvestment, change of investment policy or even pool dissolution. Collective participation enables the creation of an optimal and simultaneously flexible base for every participant to get his profit.
Where to search pools
Mostly, they are derivatives of experienced initiators – investors with years in business wishing to unite a group of like-minded people under their wings in order to optimize the investment process. You can find messages from organizers of these or those pools at topical forums, forums about making money in the Internet such as mmgp, profit maker, etc.
But there also specialized so-called investment exchanges of pools. Some of local representatives are a social fund “Investpool” and financial company Youmax. The first ones were originally the creators of a well-known forum investoday. ru. But currently, as I have understood, they practise anything but PAMMs. Those who are interested in collective investments in HYIPs, monitorings, stock market and start-ups – this is for you.
“Youmax” appeared a year earlier and apart from some of above-mentioned directions, they purposefully practise investing in PAMM-Accounts. Created by the founder of forum mmgp. ru, they have already gained confidence of many investors.
How does it work?
Joining the pool. You contact the pool organizer and make a transfer of funds; you choose the amount yourself, but according to the minimal requirements. Currency is traditional, as a rule – LibertyReserve, PerfectMoney. Money transferring in a pool is equal to buying shares. Price of a share is different, mostly it is $10. When you quit the pool, you will be able to sell the shares you have bought (to return your deposit) but at a lower price (-1-5%). Receiving income. The shares were bought, your money goes to the pool – a single trading account, the money from which will be invested in PAMM. Distribution of income, just like distribution of losses takes place proportionally to participants’ investments in the end of every trading period (a week in average). However, a commission is charged from the total amount of investors’ funds for account administration (5-10%). Don’t forget also about commissions of payment systems (1-3%) that are charged from your amount during transactions. In general, all this work is done by pool administrator, investor’s duty is to withdraw his income to his LR/PM-account. Withdrawal of funds. You need to inform the organizers about your wish to quit the pool; money will be withdrawn according the terms of this or that pool’s regulations. Accountability. Pool administration is obliged to provide their investors with daily reports about current business situation: daily income, total income, current share in a pool, etc. Responsibility. Pool organizers are not responsible for various “bugs” of a PAMM-platform or payment systems. Pool administrator is just an intermediary among all those systems; maximum that can be included in his functions is his quick reaction with a try of peaceful settlement of disagreements among sides.
Other details are described in detail in personal regulations of every pool. The main thing is – when you are choosing such cooperation, pay much attention to history, reputation, other investors’ feedbacks concerning this or that pool. It is very important to make sure your money won’t fly away in a second and that it continues working for its owner’s good.Смотрите так же по теме: