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The CHECK-CHART tells you how long your money will probably
be tied up in the company if you do not prematurely withdraw from the fund
or if it is liquidated earlier than planned. The calculation of the forecast
is based on initiator's assumptions which we check in terms of how far they
are in line with the current market. In the year of investment we set off
the tax advantages accruing to a typical investor (usually paying the top
tax rates) against the capital investment made on paying into the fund. This
means that the net capital investment at very high, tax-deductible losses
at the beginning is often considerably lower than the nominal investment.
The effect of this is obvious: the amount of capital which is dynamically
tied up for the estimated term of the investment is considerably reduced
if the forecast data are accurate. The meaning of the 0-line in black: until
the capital initially tied up has been amortised (in this case by the
accumulative addition of net yields after tax), the capital is at an existential
risk. Only above the zero line does the investor reap any returns. Zero is
the point where the investor breaks even (without any interest). The approximate
return on investment becomes clear if you consider how the line rises above
zero. The ascent of this line usually depends on the assumed scenario when
the fund's assets are sold. This is the price that the property in the fund
could generate at a projected date in the future. What is important for the
CHECK analysis is how far the basic assumptions are realistic in terms the
market.
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