What are value mutual funds?

<>
En estos días estamos viendo como uno de los instrumentos financieros más emergentes son los denominados fondos de inversión de valor. Pero, ¿sabemos verdaderamente qué significa esta nueva tendencia de inversión? Debido a que en efecto, el término valor anglosajón se ha incorporado con gran fuerza en el sector financiero y tal vez nunca más desaparezca. Sea cual sea el caso, debes conocer qué es y cómo puedes take advantage of this trend. Among other reasons, because it can help you make the most of your investments from now on.

If you often follow the specialized media you will have detected that for a few months the word value has been incorporated into the financial instrument language and more particularly that of investment funds. In recent months, many models have appeared that maintain this characteristic, which is covered within what is value. Many of the small and medium investors are more and more aware of what they represent today.

Well, value investment funds are grouped under very well-defined investment constants and you need to know them from this precise moment. In the first place, it will mean a new possibility that you will have to make the savings profitable. Beyond other technical considerations and until you can also from the fundamental point of view. Where you can choose these investment models compared to other funds of various kinds: variable, fixed, monetary, mixed income or of any other composition. It is one of the latest innovations offered by investment markets.

Value mutual funds: what are they?

This class of very special financial instruments are simply another form of investment that is characterized by its managers investing in companies that meet a basic and essential requirement and that is none other than those derived from the principles of value investing. In other words, what is traditionally called investment in value. What does it mean precisely? Well, something as simple at first glance as those who can create a higher profitability short, medium or long term. With significant differences with respect to other administration models.

Whatever the case, these companies must meet a series of requirements to be considered as a value, and where some of the most relevant are those that we expose below:

• The first condition they must provide is that they are companies with competitive advantages and that it is a term that characterizes them above other more technical considerations.
• If there can be something that distinguishes this class of companies, it is because they are listed below their real value and as a result of this scenario in the markets it can be said that Are cheap. In other words, they have a greater revaluation potential than the others. From this dynamic, you will always be in a position to generate capital gains higher than those established in other securities in the equity markets.

With very professional teams

Another concept that is closely linked to value companies is that they must always provide an excellent management team. As you may have seen, one of the nuances for investing in the stock market is that the company is very well managed from its management. To this end, it is very common for those with best professionals they have a more favorable behavior in the equity markets. To the point that this factor can be a very powerful and effective filter so that you can develop your investments from now on. It's no wonder that not all listed companies are the same when it comes to this particular aspect.

Por otra parte, no puedes olvidar que invertir en valor, o lo que es lo mismo en valor, puede convertirse en un verdadero aliado tuyo para analizar cuál será la composición de tu próxima cartera de inversiones. No en vano, descartarás una serie de propuestas de stock que no cumplen de ningún modo con esta expectativa. Del mismo modo que ocurre con la inversión en este tipo de fondos, estarás asesorado por profesionales de la inversión que se dedican profesionalmente a perseguir este target tan deseado por todos los agentes financieros. No olvides eso find value It is one of the most relevant purposes for any financial intermediary.

The craze for value funds

It is a trend that is booming and there are already many small and medium investors who request this class of investment funds so characteristic. In spite of everything, some criticisms arise from certain levels of administration that will make everyone wonder whether or not to subscribe to them. As an example, the criticism that its valuation and the soundness of investments in small listed companies may cause cash flow problems. This is a first incident that you can find from now on. To wonder whether or not it deserves the formalization of this type of investment funds so special and at the same time atypical.

On the other hand, another element to take into account from now on is that small and medium investors have no choice but to understand that the administration value it has a long recommended residence period. Namely, between five and ten years and in any case superior to that shown by other more traditional or conventional investment funds. To this end, it can serve as a very effective complement to carry out a balanced portfolio management with good prospects of achieving great performance over the years. In no case for fast operations or relatively short periods of duration.

Factors that are analyzed

To establish this value, it is necessary to specify a series of aspects that are in charge of financial analysts. By way of example, those derived from the criteria that each manager maintains or applies on what the concept of value is and represents. It is very important for this to analyze in great detail the existence or not of possibilities in the market. Especially in the big scenes instability or volatility in the stock markets. Because, among other reasons, they can represent real business possibilities at any time. With a more constant and satisfactory revaluation than in the rest of the stock market proposals.

On the other hand, value mutual funds are more profitable when they are run long term and are equity value funds. With a nature that can be very diverse since they can be constituted in the great Ibex 35 values and that they focus on investing in small or medium capitalization companies, mainly in the Spanish Continuous Market. But in addition to other stock indices from anywhere in the world to diversify the investment portfolio in a simple and balanced way.

What are value funds looking for?

This is a question that small and medium investors ask themselves very frequently and that needs clarification so that they can correctly develop their investments from now on. Well, fundamentally to reach understandable deals, with favorable prospects, especially with low indebtedness and, fundamentally and what is more important for users, that they have a very competitive purchase price. So that in a more or less reasonable period of time it can be profitable and achieve clear capital gains in the income statement.

Although on the contrary, a good part of these innovative investment funds have demonstrated their ability to generate a magnificent long-term profitability in the stock market. Especially investment funds linked to the stock market and very particularly to the Spanish. With intermediation margins higher than those offered by other formats in this class of investment products. An aspect that must be valued above other types of technical considerations.

Most profitable models

One of the investment funds that today shows a better performance than the rest is the one that invests in the Spanish equities and Portugal. Counting on securities with great revaluation options in the coming months, such as companies such as Naturgy (Natural Gas), Repsol and Siemens Gamesa. It is only one of the options that small and medium investors can select if they want to take advantage of the peculiar characteristics of the so-called value investment funds.

On the other hand, the fact that this financial instrument is constituted as the form of investment that provides the best long-term results must also be considered. And to this end, you must understand them, but showing that it is an investment that involves significant risks and as such you must evaluate them from the moment they are hired. In this general environment, they focus on acquiring assets at a price significantly lower than their intrinsic value. Not surprisingly, this is one of the main axes where it operates and as such you must take the approaches to make the savings profitable at any time and situation. This is characterized more or less by mutual funds known as value.