ELRON
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  1. Market

Opportunity

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Last updated 3 years ago

Traditional fund management is an exclusive club reserved for a small group of high net worth individuals and institutions. It is also a highly manual process with client engagement, with physical agreement, and there are also many issues that limits the long term growth and expansion.

Portfolio Locked:

The client's portfolio fund is locked in for one year at least, restricting them from cashing out.

Lack of Liquidity:

Investors are unable to liquidate their positions as there exists no liquidity. They cannot perform any peer-to-peer transfer of contractual rights as these are contract bound, and neither can they sell those on the market.

Zero Capital Gain:

No capital gain possibility, as the value of the contract, is only at par value. There's no market for an investor to resell at other prices. Therefore make it is impossible to sell it at a gain/profit.

High Entrance Barriers:

High entrance barriers restrict the participation of a large segment of masses, as portfolio management's minimum entry is much higher.

Lack of Transparency:

Another primary concern of the investors is the lack of knowledge sharing of where funds are spent.

Funds Earning With No Contribution towards Ecosystem:

In traditional funds, the entire focus of the fund is on booking profits. Consequently, the entire company earnings could not create any value to the ecosystem.