Investment Insights｜ Navigating Complex Financial Products as an Amateur Investor

Today, we continue our discussion on some of the more complex financial products within the investment migration sector.

Know Your Limits—Never Guess When You Don't Understand

For our second installment, let’s keep the introduction relatively straightforward.

1. US EB-5 Program: High Cost-Effectiveness

At the product level, the US EB-5 program requires an investment of $800,000. From an absolute value perspective, I believe it offers a very high cost-performance ratio. Consider this: it is rare in the world to find a program where you invest $800,000 with a high probability of return within just over two years, potentially earn a return, and secure a US green card. That sounds like a solid option.

However, the prerequisite is having sound judgment to select the most suitable and secure projects. If chosen well, your funds are tied up for just over two years, after which you retrieve your principal, earn a return, and obtain a US green card.

Regarding the current situation in the US, our marketing department warned me that it is too sensitive and advised against mentioning it. But if I must say a word, I deeply respect this country. I tend to view countries through small, personal details—every individual you encounter brings that living reality to life. That is simply my perspective.

Why is my introduction to the US EB-5 program so brief? Because it is extremely popular, and the market is flooded with information. Others likely cover it in much greater detail. While I understand this program thoroughly, there is no need for me to repeat what is already widely available in the market.

2. Portugal: A Rare Public Mutual Fund Option

Next, let's look at three European countries, starting with what is currently the most popular—the Portugal Golden Visa via a €500,000 investment.

An interesting phenomenon occurred here. When we at Globe Visa Group handle the €500,000 Portuguese product, we focus on public mutual funds—specifically, public funds from 3 Comma and Oxy. You will find that almost no one else in the market sells these public funds. Why? Because public funds are relatively transparent, information is public, and yields may be modest, leaving participants primarily earning legal fees. However, I believe they offer superior security.

Furthermore, I am quite familiar with these fund management companies. You can look up Oxy; it is a major asset management firm in Portugal with no primary ties to immigration—it is a large-scale, mainstream fund management institution. Five or six years ago, I visited Oxy in person and met its founder and wealth managers. As I mentioned in our previous segment on Portugal, we hit it off immediately; I liked him, and our philosophies aligned closely. During our conversation, he spoke about how he raises his children, how much he values family, and his hope that his children will take over the business in the future. I found this perspective admirable. Because our conversation ran deep, I believed his words. Think about it: an institution of that scale, built for multi-generational family legacy, is unlikely to engage in malfeasance.

We have collaborated for many years. Even years ago when they offered private equity rather than public funds, the returns were consistently strong, and some of our clients achieved remarkably high returns. It is rare and gratifying to genuinely generate profits.

Why do we promote public funds now? Because public funds are straightforward—there is no need for overcomplication. Information is fully transparent, net asset values are visible daily, and you can redeem your investment at any time if you wish. This simplicity reduces our clients' burden. If the US EB-5 program offered public funds, we would sell them immediately. Since Portugal offers this rare public fund option, we adopted it directly.

Why do I emphasize my close relationship with them? To underscore that we operate with a high degree of professionalism in fund selection. At the outset, when evaluating options, I personally reviewed virtually every fund management company in Portugal. I examined the market rankings one by one, met with them individually, assessed their operations and documentation, and ultimately selected the most reliable partners. Fortunately, we appear to be the only provider in the market offering public mutual funds.

3. Hungary: Professional Management, Complex Structure

Another option is Hungary, which offers a 10-year residency status through a €250,000 fund investment. Hungary is currently seeing significant interest, especially from enterprises expanding internationally, making it a viable consideration.

What don't I like about the Hungarian fund structure? Because government approval is limited to just a couple of institutions, the relationships are somewhat intricate. The fund does not distribute returns, and furthermore, it does not guarantee the principal. These are aspects I personally dislike.

However, I have a high regard for the fund management company itself. Let me explain why. Years ago, during the peak of the popular Hungarian government bond program, we handled an enormous volume. While I can't recall the exact figures for our peak year—whether it was 2,000 or 4,000 applications—we captured nearly 40% of the entire global market share. That program was managed by this very fund company.

As the 5-year maturity and principal repayment approached, I was quite anxious. I stressed to them: "You must ensure full repayment; otherwise, how will we answer to our clients?" At the time, this fund company was headquartered in Hong Kong, and I was also in Hong Kong, so I thoroughly audited their operations, capital pathways, and management personnel. I concluded that they were truly professional and reliable. They managed all our Hungarian bond fund clients, and upon maturity, every single penny of the principal was returned on schedule, with exceptionally professional processing.

Therefore, while I cannot vouch for personal character beyond our professional interactions, their track delivery was flawless. Actions speak louder than words—getting the job done counts for a hundred times more than boasting. While I am not particularly fond of their current structural design, I understand there are operational reasons behind it. Securing a 10-year Hungarian residency for €250,000 makes this a compelling option. If you possess a solid understanding of fund investments, it is certainly worth considering. At €250,000, it is half the investment threshold of Portugal.

4. Italy: Direct Enterprise Investment

Moving to Italy, the investment requirement is also €500,000, which is relatively high. Similar to Hungary, Italy's program follows an "approval-first, investment-second" model, which provides a layer of reassurance. However, the Italian option requires investing directly into local enterprises. My general advice to clients is to look for companies listed on the Italian stock exchange. There are several solid Italian enterprises there—Ferrari, for instance, is listed (though I admit this area is not my primary expertise).

My perspective is twofold: either you approach this with the self-awareness of an amateur investor—accepting that if you don't fully understand the specifics, you can invest in established public companies while preparing mentally for potential gains or losses—or, if you possess deep financial expertise, you can thoughtfully select and invest in Italian businesses. Both approaches are valid.

By the way, I recently returned from Italy, and my overall memories are wonderful; Italy is far more beautiful than I had imagined. I spent some time in Capri, which is an extremely upscale destination. However, one cultural nuance I disliked was the explicit solicitation of tips in Italy—something I rarely encounter in other European countries, yet experienced multiple times during my final days in Italy. The hotel I stayed at in Capri was extremely expensive, yet upon checkout, staff would still hint, "Well, we work very hard, a tip would be appreciated." While I would pay when asked—preserving social etiquette—it made me quite uncomfortable. At such high-end establishments, actively soliciting tips feels misplaced. It may not be a major issue, but at premium price points, it detracts from the experience.

5. Hong Kong SAR: Cross-Border Asset Allocation

Returning to our core investment theme, Hong Kong SAR offers a Capital Investment Entrant Scheme requiring HK$30 million. While HK$30 million sounds like a substantial sum—and indeed it is—HK$3 million of this must be allocated to innovation and technology enterprises. You shouldn't assume that tech investments are destined to be write-offs; recent data indicates they perform quite reasonably, sometimes even yielding positive returns. Thus, the HK$3 million component is quite manageable.

For the remaining HK$27 million, if you share my self-awareness as an amateur investor, you can simply purchase government bonds. If you are an experienced and sophisticated investor, you can explore diverse financial products and investment strategies. Given that you already possess this scale of capital and utilize funds internationally, parking them in Hong Kong while securing residency status is a very attractive proposition.

6. Singapore (Fund 13O): Managing Existing International Capital

Another option is Singapore, specifically the 13O fund program, which requires between SGD 5 million and SGD 20 million. Because Singapore's self-employed Employment Pass (EP) is more cost-effective, many applicants choose the EP route. However, if you hold substantial capital that already requires management internationally, the 13O framework is worth considering. Investing SGD 5 million means entrusting professionals to manage your wealth, whereas SGD 20 million allows you to set up your own family office. While it sounds expensive, if your capital is already deployed globally and needs professional oversight anyway, why not secure a residency status along the way? Singapore's residency program offers distinct advantages.

7. New Zealand: Navigating Investment Thresholds

Finally, New Zealand represents a higher-cost option with two choices: NZD 5 million or NZD 10 million. It presents an interesting paradox: the NZD 5 million investment requires a commitment of only three years and a total physical presence of just 21 days, whereas the NZD 10 million investment requires a five-year commitment and 105 days of residence. One might wonder: why does paying more seem to carry heavier requirements?

The reason is that the NZD 5 million tier is designed for qualified, active investors. That capital must be channeled directly into operating enterprises or specialized venture funds—something beyond the capacity of an amateur investor like myself. If I had the capital, I would personally opt for the NZD 10 million passive path. However, if you are a seasoned, accredited investor, the NZD 5 million option is exceptionally efficient: a three-year investment period where you can potentially generate returns, combined with a minimal residency requirement of only 21 days over three years (averaging one week per year) to secure permanent residency. It is a tremendous value—provided you possess the active investment acumen required.

Conclusion: Know Your Limits or Consult Experts

My advice regarding these complex financial investment products is straightforward. Either embrace the self-awareness of an amateur investor—accepting that if you proceed without active expertise, you view it as an active investment that carries balanced risks and rewards, keeping outcomes within your psychological expectations—or engage certified professionals to provide rigorous, objective assessments. The latter is undoubtedly a more responsible approach.

In summary, this is my concise overview of investing in complex financial products for immigration. To be frank, these products can give even industry practitioners a headache. While we offer these options, navigating them requires strict adherence to prudence. I often remind myself that this isn't a reflection of personal inadequacy; no single investor possesses the bandwidth to master complex financial products across every country and industry. What we can do is identify and collaborate with top-tier financial product designers and managers, while reminding investors to exercise independent risk assessment.

Overall, these are my thoughts.

Thank you for reading. If you are interested in fully compliant investment migration strategies, feel free to leave a message.