Fund investment 2023

Residencies & citizenships 🛂 Portugal Golden Visa 🇵🇹
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As the other thread on funds (Portugal GV Fund Comparison?)
is already very long and many of the discussions on specific funds out of date, I thought I’d start a new fund thread for 2023.

A few questions on funds:

  1. Open-ended vs closed-ended: Are open-ended funds eligible for the fund investment route as long as you hold the investment for the 5+ years until citizenship (more like 8-9 years with current application timelines)? Or are only closed-end funds eligible? I’ve heard conflicting information about this. Obviously would prefer an open-ended fund for total control over when to exit.

  2. Public vs private equities: Are funds that invest in public equities eligible, or only those investing in private equity and real estate? For example would an investment in IMGA Ações be eligible? Have people gotten approved with such an investment?

  3. Switching investments: Can you switch from one fund to another during the required 5+ year holding period, or can you switch from a fund to real estate (or vice versa)? For example, if I invest in an open-ended fund now, then 3 years later buy an eligible real estate property and exit the fund (in that order so that investment minimum is maintained at all times) would that be ok?

  4. Which fund managers have funds that are available now (Jan 2023)? I’ve looked at Blue Crow, Optimize, the STAG funds (Prima Europe and Pela Terra), ReCap, Atlantic by Lynx, and Iberis Capital. Are there others that are not on this list?

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I’ve gotten preapproval and IIRC others have full approval with IMGA Acoes (forgive my lack of accents, US keyboard)

Open ended funds should be fine

Unsure with your other questions

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I’m invested in BPI Portugal, and have been pre-approved. NB I hear this fund hasn’t jumped through the FATCA/PFIC hoops, so is not suitable for US investors, who would need to use IMGA for an open general equity fund.

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(1) yes. It doesn’t matter the form of fund, so much as that the written direction of the fund is to have portuguese assets and that it does actually have portuguese assets.
(2) yes
(3) You can change the investment, but not change the class of investment. Ex. you can buy funds, then half way through sell them and acquire other funds so long as you meet the valuations required. You cannot sell your fund and go buy a house. Sorry.

It is unclear whether, if you do change funds, you have to meet the minimums as of the time you applied, or as of the time you change, or when you renew. Probably the former but I’m unaware of any data on the matter and it’s probably subjective.