Simcountry
Forum General Investment Funds

Investment Funds

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shallom

All worlds
17 Jul 2012 20:23Link
how exactly do investment funds help a country.
J
James the Fair

All worlds
17 Jul 2012 23:42Link
Thats what I want to know. Can someone tell us?
O
Orbiter

All worlds
18 Jul 2012 04:35Link
they increase pop income, and all related benefits, with out increasing related costs
S
shallom

All worlds
18 Jul 2012 06:28Link
oh ok so it gets taxed. but i have another question i took over my investment fund and invested about 95% into one of my ceo corps that makes about 1.5 b monthly and so my fund owns 5% which gives me about 65mil in dividends. but for some reason my profit per worker dropped to 0.00.
D
Drew

All worlds
18 Jul 2012 06:49Link
What happens is the dividends and contribution from the public gets added into the fund. So the money not invested through stock goes to the world bank to be loaned out. The interest that that carries is divided by the investors to determine your profit per employee.

So what you have to do to use it is: Invest in good investments to get high dividends or increase the salaries of your public to boost this fund nice and high. When it's high you can liquidate the investment fund so more money goes to the world bank to increase the profit per investor.

Side note, as this finally gets useful interest rates will drop and the whole thing will become meaningless again. So I ask the group what really is the real benefit of this?
A
Andy

All worlds
18 Jul 2012 09:59Link
The investment fund has cash and shares in some corporations. The fund receives dividends and interest each game month.
This profit is used to increase the income of workers in the country.
It results in an increase of consumption by the population.
S
shallom

All worlds
18 Jul 2012 19:39Link
ok thanks
A
Arccuk

All worlds
18 Jul 2012 23:45Link
Andy,

The interest paid is now at 15%, is this the last reduction or are there still more to come?

(please leave the interest high enough to make the work managing these funds worthwhile!)
D
Drew

All worlds
19 Jul 2012 08:10Link
+1
A
Andy

All worlds
19 Jul 2012 09:26Link
The current interest is reduced to 0.15% per game year.
this is 0.15% for 2 days or about 27% per year.
The interest is paid by the world bank (the gamemaster).

The total amount of the interest is huge and any idea of better integration between the fund and the country finances dies immediately because it means that the gamemaster will pump hundreds and thousands of trillions into the countries.

Reducing the interest, and allowing the investment funds to loan this money to players will reduce/eliminate the problem.

Lower interest will also make the stock market more attractive (like in the real world: interest declines-> the stock market gets the funds invested in shares).

There are several alternatives for further development of the investment funds and the real estate markets. What we are currently doing is to try and adjust these funds to the reduced exchange rates (a trillion is now a
A
Arccuk

All worlds
20 Jul 2012 01:42Link
OK I understand the reasoning by which the interest on IF cash is reducing. At the moment I am just questioning if the time and effort required to build them up to improve the country's financial position is worth it - after all an enterprise can trade in shares more easily and, as far as I understand, get paid the same proportion of dividends. A country or CEO can also loan cash out and gain interest.

IF's need some sort of game incentive to be used over and above the profits that can be gained from using a less time consuming method. At the moment that incentive (for me) is the higher interest rate.

I look forward to the future developments of IF's and will continue to use them for now, although it is increasingly difficult to stay motivated to do so.