Is it time to sell our investment funds?

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Donde una strategy de desinversión a corto plazo basada en emociones más que en objetivos a medio plazo, multiplica la oportunidad de error y increases the probability of loss. No es sorprendente que las decisiones de desinversión apresuradas a corto plazo generen posibilidades de rentabilidad perdidas para los accionistas. Otra conclusión que se puede extraer de una venta de posiciones en este instrumento financiero es que para quienes mantuvieron sus posiciones en fondos con un target de inversión a mediano o largo plazo, las pérdidas latentes se convirtieron después en ganancias; y para quienes realizaron nuevas suscripciones en ese momento, se generó una rentabilidad posterior.

On the other hand, it is necessary to emphasize, as in the stock market, that it is not the time to sell open positions in an investment fund. Because It's too late and we will carry out this procedure at the lowest part of the price of your securities. With all certainty that with a loss of its valuation in the financial markets. This is true for both fixed income and variable income models, or even alternative ones. To the point that it is very convenient that the profitability data must be analyzed by the members individually, depending on the moment in which they subscribed the investment fund and the profitability they have accumulated and taking into account their investment horizon.

Sell the funds: this is not the time

It is possibly neither the best nor the most propitious moment to carry out this action since investment funds, as they did in similar or worse market situations, continue facilitating liquidity to the members who need it, but also profitable possibilities for others. As a result, there is more to lose than to gain, and therefore we must exercise prudence before making a choice, one way or another. To this end, it is much more prudent to wait until the end of the year and check the real status of our investments. To verify its profitability and see if it is convenient for us to transfer to other investment funds.

Si al final la decisión que vamos a tomar es transferir a otros fondos de inversión, debemos tener mucho cuidado con los fondos de renta fija puesto que su recuperación será mucho más lenta que en los otros formatos. Hasta el punto de que nos costará más recuperar el capital invertido en este año. Por otra parte, además hay que valorar las ventajas que nos aporta el hecho de realizar transferencias desde el punto de vista fiscal. No en vano, son operaciones que no afectarán nuestra cuenta de ahorros puesto que son movimientos que están exentos de cualquier tipo de pago y pueden beneficiarnos en las estrategias de inversión que vamos a realizar a partir de ahora. A diferencia de los reembolsos que tendrán una penalty del 19% en caso de que el saldo final de las inversiones be positivo desde el principio.

Keys in a portfolio of funds

We must learn from the past, and to this end what happened in this exercise should help us not to make the same mistakes as up to now. One of the recipes to meet this much desired objective is to diversify the investment fund portfolio. We never tire of repeating that one of the best ways to protect our savings It comes from the diversification in these products aimed at private savings. We should not concentrate all the money in the same basket. If not, on the contrary, we must distribute it in several and of a different nature. So that from this dynamic we can more effectively circumvent a scenario like the one we are experiencing today, and even if it is an exceptional event.

On the other hand, a financial asset that should never be lacking in our portfolio of investment funds is that linked to the stock markets. Mainly after the spectacular fall in the price of the shares of listed companies. To the point of representing the authentic business possibilities by the valuation that they have today in the equity markets. Both with regard to the sale of shares on the stock market and the investment funds themselves. With a revaluation potential that is highly estimable due to its depth and that can help us improve the profitability of these financial instruments from now on. Above the situation of international fixed income.

Equitable distribution

What cannot be done is to hire several investment funds of various kinds. It does not make any sense since the only thing it favors is empowering and delve into the same problem. Although it is a mistake that many small and medium investors tend to make with some frequency, especially those who have less knowledge in this type of investment. Beyond the behavior they may generate in the coming years. If not, on the contrary, it is necessary to resort to funds that can complement and even in a certain way neutralize their most negative effects in terms of profitability. Not only with regard to the chosen financial assets, but also in the geographic areas where they are concentrated.

Although on the other hand, no less important is the fact that we must be more cautious than ever before the decrease or suspension of dividends in a large part of investment funds. To this end, it cannot be forgotten that we are at a time when investors are considering whether they are going to collect their dividend for the cascade of suspensions and reductions of the financial assets that make this remuneration to the shareholders. Both with regard to equities and fixed income. Much more attention must be paid to their quality as they are managed very efficiently and can be adapted to all financial market scenarios, even the most adverse. We will have to wait until the end of the year and check what the status of the investments is and therefore the objective is to see if it is convenient for us to make the transfer to other investment funds.

Stock trading soar

The Spanish Stock Exchange traded 55,468 million euros in equities in March, 59.9% more than the same month of the previous year and 46.4% more than in February. The number of trades in March was 7.61 million, 142.3% more than in March 2019 and 82.9% more than the previous month. In March, BME reached a market share in Spanish securities trading of 72.39%. The average range in March was 14.96 basis points in the first price level (16% better than the next trading venue) and 21.43 basis points with a depth of 25,000 euros in the order book (26, a 1% better).

These figures include trading carried out on trading venues, both in the transparent order book (LIT), including auctions, and non-transparent (dark) trading carried out outside the book. While on the other hand, the total volume contracted in fixed income was 31,313 million euros in March, which represents a growth of 26.1% compared to February. Admissions to trading, including issues of public debt and private fixed income, amounted to 42,626 million euros, with a growth of 19.5% compared to the same month of 2019 and 83.7% compared to February of this year. The outstanding balance stood at 1.59 trillion euros, which entails an increase of 0.9% compared to March 2019 and of 2% in the accumulated of the year.

A lo largo del mes de marzo continuó creciendo la negociación en el mercado de derivados financieros. Sobre todo en Index Futures, en un mes marcado por un incremento de la volatilidad. El 12 de marzo se negociaron 77.763 contratos de futuros del IBEX 35 PLUS, récord histórico diario, excluidas las semanas de vencimiento. El volumen de Futuros sobre IBEX 35 aumentó un 74,6% y en Futuros Mini IBEX un 200,8% respecto al mes de marzo del año anterior. En Opciones sobre Acciones, marzo fue el tercer mes consecutivo de crecimiento respecto al mismo período de 2019, con un aumento del 60,4%.