Wednesday, September 10, 2008

Investing

Maria has been looking in to making some serious investments in Entropia Universe, but is still looking for the big investment that will be worthwhile. So far, she's found 3 "investment funds," but each have pros and cons.

Entropia Investment Fund


http://www.eifund.net/

Advantages

- Been around longer than the other two options
- Currently owns 2 Land Areas and a Mall Shop
- Already has multiple investors

Disadvantages

- Originally, EIF Fond Manager (avatar in charge of the fund) was created by another player from the Via Delarosa society, so Fond Manager may be in violation of EULA with Mindarc, which means ALL inventory and storage that this avatar holds is liable to eventually be purged in to cashout for avatar owner or even worse, account may be deleted entirely and all peds and goods avatar owns may be gone forever!
- Originally Fond Manager would allow share buy ins, hold ped for 90 days and then buy back the shares with income in addition to original buy in price. However, since that time this buy back policy has been stopped since after Land Area (LA) purchases and Mall Shop Purposes, some of the inventory Avatar is now in charge of have a Zero Trade Terminal (TT) value. As a result shareholders are required to find new avatars to sell their shares too if they ever want out of the fund, which can be difficult if not impossible at times due to the large cost of buy in. In other words there's ZERO guarantee you'll get a return on investment!!!! All you'll get is what Fund Manager thinks is appropriate percentage of taxes to share with you. You have zero ways of finding out if the amount he gives you is appropriate amount based on your "share" of the fund... You could pay in 65.00 USD or whatever current buy in price is and only get 3.00 back or less on your investment since there's no guarantee or anything that LA and/or shop will ever be resold...

Buy in is relatively high since current rules require you to buy at least 5 shares on inital investment.

No set limit on max number of shares so anyone at any time could buy in and buy out 60% or more of shares and essentially do a buyout takeover of the fund's voting rights.


Entropia Holdings


http://entropiaholdings.com/

Advantages

Relatively New - so getting in now would be good since it's just starting.


Disadvantages

Relatively New - so is not well known, and on some forums is actively discredited by members of the EU community.
MMBig Show is the Avatar in charge - and he's known to be aggressive in some forum postings and is a real life martial artist, so may be aggressive in dealing with. However, he seems to have a good head on his shoulders and may do very well.

Business is based on real estate sales, which is not a proven business concept in EU since most real estate deals are usually done in person to person trading or via EU auction.

Initial buy in was originally $100.00 USD, which is more expensive than any other funds listed here! This may have changed by the time you read this.


Developing Worlds Investment Funds


http://bizconnects.com/emergingworlds/index.php?option=com_content&view=article&id=20&Itemid=29


Advantages

Interested in multiple worlds besides Entropia Universe.


Disadvantages

Originated in Second Life so Second Life account is needed to buy in. This one is new too so not much is known about it.

Conclusions


Buying in to an investment fund such as these is risky but could be profitable. Many forums warn that deals such as these are usually "too good to be true" and are usually run by scammers using the variations of the "friend scam."

My avatar, Maria Mastermesh Mesh, will likely not buy in to any of these any time soon since risks are too great. She will continue to buy items at TT values (or below tt) and sell them at reasonable prices above TT but below market values. Visit http://www.mariasgoods.blogspot.com for a fairly updated list of items Maria is selling. This way of selling at TT or lower is the original method the Entropia Investment Fund started out once it's investors put money in to the fund. It seems to be the safest way to make money in EU, the least risky way to make money on EU, and the best way to make money in EU besides sweating. Maria is interested in possibly creating a new investment fund based solely on this method of trading as it seems to be the way EIF was successful and safe before the Land Area, Hanger, and Shop purchases. Having this form of trade as the basis of a society may well turn in to a good idea in the long run. However, for now, Maria will stay in her current society, Entropia Asia. If you are interested in this idea, please contact Maria and if we get enough people interested, maybe we can buy a shop and work on future investments. An apartment shop with shopkeeper would be cheapest, but that's still currently over $500 - $600.00 USD, so is too costly at the moment.

1 comment:

Seenath Kumar said...

Really great information on investment thanks for sharing this blog. :)
mutual fund investment