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Especially, they are distinguished by the need for less knowledge of the operations made that derive from investing in a market index. without exchange riskIn other words, whose currency is the euro, such as the Eurostoxx-50. And also because they are companies strongly consolidated in the business panorama of the old continent.
The minimum investment to have access to these funds depends on the characteristics of each one of them, but at this time there are products that You can subscribe your shares from only 500 euros. Even though for the investment to produce the desired effects with respect to its profitability, you need to make much more demanding contributions. In principle, starting from 5,000 euros and making profitable the movements of this financial market.
Eurostoxx: composition
The Eurostoxx-50 index is made up of the 50 most relevant stocks in the euro zone. The companies that can be included in this index come from the following countries: Austria, Belgium, Finland, France, Germany, Italy, Luxembourg, the Netherlands and Spain. In this regard, the securities listed on it and that come from the Ibex-35 are its main heavyweights: Santander, BBVA, Endesa, Iberdrola and Telefónica.
The securities are weighted according to the capitalization criterion, taking into account the level of free float, which is a definition in English that means floating capital and that applies to part of the capital stock of a company or company that is freely traded on the stock exchange and that is not controlled by shareholders in a stable way. It is also important to note that this benchmark of the old continent it is reviewed annually taking into account the number of shares and the level of floating capital of these with respect to the total.
Advantages of your hiring
The main advantages of investing through funds based on Eurostoxx, in terms of the direct purchase of shares, are very clear, fundamentally for a type of investor with a fairly conservative profile, as it may be in your case, who has a certain reluctance to take positions. in equities for fear of losing part of the invested capital, and mainly after the sharp falls in equities at the beginning of this year.
Especially since you need a less knowledge From the market that is derived from investing in a market index without exchange risk (in other words, whose currency is the euro). If you invest in sector funds or emerging countries or with currency risk, for example, you have to have a good knowledge of them in order to be able to somehow examine the market you are entering.
Si necesitas invertir en Bolsa pero no tienes los conocimientos necesarios para hacerlo, tendrás menos problemas para acceder en un fondo referenciado al Eurostoxx-50 que comprar acciones sin ningún criterio ni strategy establecida. Otra ventaja adicional de esta opción de inversión es que you should not define yourself by a specific value. At the same time, the companies that make up this index belong to very different sectors of the economy, managing to diversify investment.
Strategies in operations
Another aspect that you should pay attention to is the commissions and expenses that these investment funds entail: subscription, depósito, devolución y administración que de forma general oscilan entre el 0,5% y el 5%. El plazo de permanencia recomendado es otro parámetro que los caracteriza debido a que de forma general es muy alto, por encima de otros instrumentos financieros, entre 3 y 5 años. Están dirigidas a un perfil inversor bastante conservador que tiene la mira en el medio y largo plazo.
Characteristics of these funds
Despite having many similarities with most of the funds that can be found in the financial market, it is not surprising that there are some differences that it is essential that you detect to establish the advantages of taking positions in these products. And that would be simply the following:
- They are company-based with higher specific weight of European equities.
- Can subscribe very affordable contributions for alland from highly volatile funds to lower risk funds.
- They make it possible to subscribe products with a guaranteed nature safeguard capital deposited by the saver.
- You need a less knowledge derived from investing in a market index without exchange risk.
- They give the option to benefit from the probable revaluations of European securities without having to be directly exposed to the bag.
- Por el contrario, están expuestos a una serie de inconvenientes que además será necesario que los conozcas, para que puedas establecer su viable contratación. Y be cual sea el caso, puede conllevar ciertos riesgos.
- It's a stock market less known by intermediate investors.
- Expenses and commissions are significantly higher to those derived from the contracting of other financial instruments, which in some cases can reach up to 5%.
- In the guaranteed ones, to achieve maximum profitability a series of requirements must be met, sometimes quite difficult to meet.
- In certain situations you should take over high volatility and a high risk in investment.
- The terms of permanence in most of the proposals offered they are excessively tall for the interests of the most aggressive investors, since they are designed for the medium or long term.
What models can be subscribed?
Under this global scenario, the management companies have developed in recent months various proposals so that their clients can subscribe a product of these characteristics and from different modalities and investment perspectives. Their main difference lies in the composition of their portfolios and in the type of profile these products are aimed at. Some of them even with very innovative items who propose a new incentive for their hiring.
As a result of this trend, it is very difficult to abstract from the current offer, and therefore, not include any of these investment funds in the selection that you develop from now on. Decidedly proposals that you will not miss, made with all kinds of strategies. And even incorporate investment funds, where you will be able to make your savings profitable in the most adverse scenarios of this variable income market. In other words, if this index falls in price, you will make significant capital gains.
Now you just have to select the fund format that best suits your conditions as a small investor. It may take some time, but in the end you will reap the rewards of having channeled the investment correctly. And that, decidedly, can (and must) go complemented with other fund models, not related to Eurostoxx. As a formula to protect invested assets and take you as few surprises as possible.
Diversify investment
The first effect that this action will have is the neutralization of any negative trend that affects a specific value of this stock index. It also means being in buying positions in companies with high economic solvency that will be the ones that Develop a better behavior in the most expansive moments of the international economy., and fundamentally the European.
In spite of everything, it will ultimately be you who will have to opt for the composition of the portfolios that the managers have previously prepared, either through defensive proposals without excessive risk. Or this is why they involve a greater commitment to your interests. But with the compensation that will also offer greater opportunities for revaluation in the coming months, should European equities return to an upward path. And it can even reach the highest level of the year.
Whatever the case, it is another option you have at the moment to open positions in equities. And you don't have to limit yourself to domestic markets, as you probably did until a few days ago. The answer, finally, may be to open new scenarios for your money.
