Investment funds are focused on stock exchanges, both national and outside our borders. They focus on the fact that as stocks go down, their stocks appreciate. They replicate the behavior of the markets, but in the opposite direction. That is its great difference with respect to other investment funds. From this dynamics, they will allow you to make profitable savings with bear markets.
As the declines in the stock markets become more pronounced, the gains are in your favor. As a result of this particularity, there are many benefits that they can contribute to the checking account. But if this scenario is not reached, rest assured that you will leave a lot of euros on the way.
Inverse funds: Stock market down
Estos movimientos del mercado de valores son recogidos por algunos fondos de inversión que disponen estas características únicas. Se pueden suscribir en cualquier momento, siempre y cuando la tendencia de la renta variable be clearly bearish. It is the only requirement that will be required in the lawsuit. Because on the other hand they have the same structure of traditional investment funds. In other words, based on fixed or variable income or even through mixed formats-
This class of financial instruments are of recent creation. Allow small and medium investors, as in your case, to invest their money in all possible scenarios. Even in the most unfavorable as it is in this particular circumstance. Another of their contributions is that they are indicated for the shortest terms, and even in the middle. But not in very long-term situations. Unlike the other investment funds that are recommended for these maximum terms.
If you are going to invest the savings in any of these investment products, you should know that they are not very sensitive for very high amounts. Quite the contrary, since you will have no choice but to allocate a minimum part of your personal budget. Con un target muy claro, que no será otro que proteger los activos que destinas a inversión. Sobre todo por los riesgos que corres al abrir posiciones en algunos de los fondos de inversión disponibles en los mercados.
How do they operate?
Another aspect that will be very necessary for you to know from now on is that their operations are carried out on stock indices. Not in stocks as would be normal in other types of financial instruments. They are available in most indexes of the old continent, including Spanish. They are also present in other international markets, even though their offer is not so wide, nor is it developed by all the management companies. Among them, the United States stock market stands out.
Another very important feature stands out. It is none other than that they are not combined with other financial assets of variable income and fixed income. Something common in this class of products, as you will surely know if you have had them operated at a certain time. It is something as simple as that you will earn money based on the downward evolution of these indices. That on the other hand are not mixed in the investment portfolio. You invest in a single index of actions.
How can they be hired?
Investment funds are present in the offer that the managers have been developing for not many years. Whatever the case, under a weak initiative that may not satisfy your investment wishes. They are available through your frequent bank. Via financial contributions from 1,000 euros about. From this perspective, investment funds adapt to all investment profiles. And definitely all households. Not surprisingly, they are one of the main advantages they will bring you in your hiring.
Regarding the commissions and administration expenses that these financial instruments entail, there are no major differences in relation to the rest of the investment funds. Of this scenario, they have percentages that they move between 1% and 1,50% sobre el capital invertido. Distribuida entre varias comisiones: distribución, administración o depósito, entre las más importantes. Desde este enfoque, no requerirán un esfuerzo financiero especial en su subscription.
Another aspect to pay attention to is that it consists of a very specific product, which is intended for a very specific investment moment. Not as a savings fund for many years.and many to create a bag of retirement money. Decidedly not, among other reasons because a good part of the accumulated savings in this period of time would be lost. Investment funds should only be formalized in very specific scenarios of the financial markets.
What if the bags go up?
If this bullish scenario is fulfilled, the participants of the funds would lose a lot of money, decidedly more than they imagine. In proportions adjusted to the rises in the equity markets. Therefore, this product is not considered a savings model. But rather a conjunctural product to emerge afloat in the most adverse situations for all small investors. Unless you make a mistake and the downsides are seriously installed in your investment portfolio.
Sea cual sea el caso, puede servir de complemento a otros fondos de inversión que tengas contratados. Ejercer la amortización de los movimientos a la baja de los mercados de renta variable. En este aspecto, si se puede usar como una strategy muy válida para equilibrar tus aportes económicos de forma racional. En la medida en que más de un inversor lo aplique en sus acciones in front of everyone's bags.
There is another question to be explained, and that is none other than to elucidate which are the most recommended investment funds to hire. Well, very simple, those that depend on the stock indices that fall the most at those times. Or in your case that show the worst technical aspect It can invite you to take positions in the models authorized by the management companies. Regardless of the index in question. In some cases it can be French and in others Spanish. They can rotate with great agility.
Other similar products
Bearish positions in financial markets are not the exclusive monopoly of investment funds. There are a number of other products that also import this unique strategy, albeit with substantially different approaches. It is the specific case of guarantees, which on this occasion opens its opportunities to other financial assets: precious metals, raw materials, etc. And that as a novelty regarding investment funds, it is not reduced to stock market indices, but also to securities and even sectors of these. markets
Warrants are very dangerous because they represent a risk in open positions. To the point that if you don't have enough experience, the effects can be the other way around. In other words, you will lose a good part of your assets. In this regard, the financial instrument is very more aggressive than mutual funds. As more difficult to control, so they are not recommended for an average investor as your own case.
What's more through exchange-traded funds, known as ETFs, compile this investment strategy. But this time under more defensive approaches that means that you can stop losses at any time or situation. At the same time, the proposals made to you from these financial instruments are much more limited. In addition, some learning will be necessary in the operations developed under these approaches.
Whatever the case, there is one thing that you have to be very clear about, and that is that they can win even in the worst scenarios. You only have to select the product that better fits your profile as a small and medium investor. And expect the stock markets to drop soon, and the higher their intensity, the better for your personal interests. It should not be surprising that investment funds known as inverse are based on these characteristics.
You will have different strategies to direct the investment, even when always under this necessary premise. Otherwise, it will be better to prepare your checking account because many euros will disappear from your total balance. Without being able to issue an order to limit losses, as is the case with the purchase and sale of shares on the stock exchanges. It is a very important rule that you must take over from this very moment.
Treatment of these funds
The mechanics of these investment models require very special procedures. They will be contracted as a complement to another class of investments. Low quantities not very demanding That can cause more than one obstacle in your headlines. Another characteristic of these funds is that they are very short-term. They are only valid for very specific moments.
Its offer is not as wide as with other investment funds. Consequently, they are very similar designs that do not provide plurality in decisions. On the other hand, in some cases it is necessary to change the currency to participate in its values. With penalties in commissions.