Investment Fund Composition
Last updated
Last updated
Let's delve deeper into the inner workings of an Investment Fund, using VLRDEFI (DeFi sector) as an example. Imagine VLRDEFI as a pie, with each slice representing a different DeFi project on MultiversX. Here's a possible breakdown:
Hatom (HTM token)
40%
AshSwap (ASH token)
35%
xExchange (MEX token)
25%
Investing in a Fund is a breeze! Here's a simplified explanation:
Choose your Fund: Explore the various funds offered by Valoro, selecting one that aligns with your investment goals (e.g., VLRGAMING for gaming enthusiasts).
Invest with eGLD or Stablecoins: Use either eGLD (MultiversX's native token) or stablecoins (like USDT or USDC) to purchase your fund shares.
Automatic Portfolio Management: Valoro takes care of the rest! We allocate your investment proportionally across the underlying projects within the Fund.
Example:
Imagine you purchase 100 USDC worth of VLRDEFI shares. Based on the composition mentioned earlier, your investment gets distributed like this:
$40 worth of HTM tokens
$35 worth of ASH tokens
$25 worth of MEX tokens
The value of your fund shares fluctuates based on the performance of the underlying assets. If the DeFi projects in VLRDEFI experience price increases, the value of your VLRDEFI token will likely rise as well. This means you could potentially earn more than your initial investment when you sell or withdraw your VLRDEFI token.
When withdrawing from a fund, you might receive the current USD value of your shares instead of the individual tokens.
The composition of a fund may be rebalanced periodically to adapt to market changes, slightly altering the initial proportions of the underlying projects.
To withdraw your funds, you must retain ownership of your shares. Selling or trading them eliminates your claim to the underlying assets.