Investment Fund Losing Value- Problem for GV Renewal?

I see from my bank account where my investment fund units are held that their value has decreased from 350,000 euros to about 344,000 euros. Is that an issue for renewal of the GV? I assume not as the original investment is what counts? I started the GV process in 2021 before they raised the minimum investment to 500,000 euros.

No. It’s normal. Same with my investment in Shilling VC fund. That’s been showing as under €350,000 since I put the money in there in 2021. Your bank will still be able to make the required declaration when AIMA asks for it.

Thanks. Good to know!

Good question. The requirement is that you make an initial investment at or over the minimum amount set in legislation at time of application. Any of the available asset classes will change value over time, including real estate. It would be unfeasible to expect GV holders to keep buying/selling assets to meet the minimum target. My 2020 investment is currently at 333k (normal J curve I hope :laughing:).

I apologize for asking. You invested $350 000 and now on the account, you have $333 000? Is that correct? Do you have the option to put your money in the savings account to have a bit interest rate? Thank you in advance for your response!

If you invest in a Portuguese fund to qualify for a GV then you must use a bank as the custodian of the share certificates. The bank displays the declared value of these share certificates in your online investment account. It is not held as cash by the bank because you’ve already invested in a qualifying fund whose value is reflected in your bank investment account. For example, my Millennium Bank app shows a cash balance of €110 and €339,000 in my investment account. It, too, is going down but it never showed the full €350,000 that I originally put in three years ago. Makes no difference to the qualifying bank declaration that AIMA occasionally asks for.

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Yes, right now I understood it. Thank you!

May I ask the fund name? It’s shocking to me that in 3 years, given how the market has performed, that your value has declined!
Aside from the fund name, I’m curious if one MUST stay with an underpergorming investment or can it be moved elsewhere?


If the fund is a VC then this is perfectly normal. The fund is not an ETF tracking a stock market index which is expected to go up each year and pay a dividend. The fund is a company that is investing in early stage start-ups and these do not produce a return until divestment which comes years later. Nothing shocking about it. We’re three years in with Shilling and I don’t expect meaningful divestments to start for another few years. IIRC, my fund Shilling is aiming for a three times return over 8-10 years. Most of the big divestments/payouts will come towards the end of this. Normal for a VC.

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Thank you… I’m a VC investor also and understand the nature of this type of investment… Good luck!