Ship Fund – The Basics

A Schiffsfond, also called the ship’s participation, is a closed fund. The collected items will this capital invested in the construction or purchase of ships. As with all closed-end fund people may want to invest their money, while no definite period, called the placement period to invest in the ship’s funds and thus join the ship’s company. The fund will be closed as soon as enough investors joined the fund and the required capital has been acquired. Persons who participate invest their money, as a limited partner in a company, that is, they acquire a stake in the company capital. In general, such participation has a term of ten to 25 years. Most of them are on a ship fund at a very specific object of investment and is not a so-called “blind pool. By investing in the Schiffsfond the investors bear the risks as well as opportunities to bring this business with him. The risks can be very high and this lead to total loss of investment. Entitled to a fixedRate and a fixed repayment date does not exist, as the investors are the company’s equity available. In return, the investors will participate in the economic results. With ship funds is basically a so-called prospectus, in which the main points that are defined for Investment Property and the legal and tax Rahmbedingungen. So far there are no state funds to provide for ship inspections, which is why providers of shipping funds require no state approval and no formal qualifications or proof of good character must. Thus, there are no rules for ship funds may be invested in the vessels, or like a ship fund must be designed.