Financial dictionary

A Real Estate Fund is an investment fund that focuses on investments in real estate and related assets. These funds can invest in various types of properties, such as office buildings, commercial spaces, residential complexes, or industrial properties. Real estate funds allow investors to gain exposure to the real estate market without the need for direct ownership or property management. These funds can generate income from rental payments as well as from the appreciation of property values. They can be open or closed-ended, with open-ended funds allowing for regular buying and selling of shares, while closed-ended funds have a limited number of shares and do not allow regular buying or selling.

A reference currency is a currency used as a basis for measuring the value or performance of other currencies or financial instruments. In international trade and finance, it is often used as a standard for comparison and conversion of values. For example, in many financial transactions and calculations, such as exchange rates or price indexes, the US dollar, euro, or another stable currency may be used as the reference currency. The reference currency provides a foundation for determining relative value and facilitates international trade and investment.

Robo-advisory is a service that provides automated investment advice using algorithms and software platforms. These services utilize technology to analyze financial data and create personalized investment plans without the need for a human advisor. Robo-advisory platforms typically offer low fees, easy access, and automated portfolio rebalancing. This makes them an attractive option for individuals seeking a time- and cost-effective investment solution.

ROC (return on capital) is a metric that evaluates the profitability of an investment in relation to the capital used. It expresses the profit generated by a company or investment from each euro of invested capital. ROC is used to measure how efficiently a company or project utilizes its capital to generate profit. A high ROC indicates that the company is using its capital effectively, while a low ROC may signal the need for improvements in management and resource allocation.