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According to Arrivald, when the Federal Reserve began cutting interest rates in September, interest in its equity investment products rose 79% month-on-month.
The significant rebound underlines growing investor sentiment that real estate equity investments are poised for substantial growth.
The Fed’s signal has sent ripples through the financial markets, with many investors considering alternative investment options. Real estate, especially through platforms like Arrivald, has become an attractive option due to the potential for long-term returns and diversification benefits.
Don’t miss:
Equity investments offer opportunities for capital growth and profit participation, but often involve higher risk and volatility than debt instruments.
Here is an overview of the most important points:
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Ownership interest: Stock investors gain ownership of a company or assets by purchasing shares. The number of shares they own determines their share, giving them a proportionate claim on the company’s assets and income.
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Capital growth: A main objective of investing in shares is capital growth. Investors aim for the value of their shares to increase over time, allowing them to sell at a profit.
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Dividends: Certain equity investments, such as stocks, can pay dividends: periodic distributions of the company’s profits to its shareholders.
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Voting right: Equity investors often have voting rights, depending on the type of shares and the structure of the company. This allows them to participate in important decisions, such as electing board members or approving major corporate actions.
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Risk and Volatility: Equity investments involve greater risk and price volatility than debt instruments. Stock values may fluctuate due to market conditions, economic factors and business performance. However, this higher risk offers opportunities for higher returns.
Arrivald’s equity products offer investors the opportunity to own fractional shares of income-producing properties, such as rental properties and commercial real estate. The Fed aims to stimulate economic activity by lowering interest rates, which can positively impact property values and rental income.
As interest rates drop, real estate financing costs decrease, making it more affordable to acquire real estate. This can increase demand for rental properties and generate higher rental income, benefiting both property owners and investors.
