Given this monetary scenario, and the risks involved in investing in equities, many of the savers (the most defensive), among which you can be yourself, They have turned their gaze to mutual funds as a way to increase their personal assets, without exposing themselves to excessive risks.. Simply for many reasons that support the choice of this investment model.
One of them is the great modality of formats that you can formalize from the funds: fixed, variable, mixed income, and even alternative. But they go further, when the management companies do them, with greater protection and interest so that they are signed by the client as in your case. From flexible, even with the euro covered, and with a whole series of commercial strategies that have convinced a significant number of savers to make their monetary contributions.
Is it advisable to carry out these operations?
Unlike traditional fixed income products, they do not offer you a guaranteed return, not even those based on financial assets that do not come from equity markets. Nonetheless, They are usually generating an average yield that is between 3% and 10% in recent years, depending on their nature and exposure to the main financial assets.
And that in the specific case of those linked to securities markets can skyrocket if conditions support it. In any case, it is important that you know, not that their profitability is guaranteed, but that they can even generate significant capital gains.
Yes, Ok It is not a short-term recommended product by its very nature., it does point out a series of advantages that can make it very suitable to your interests, if you need to get a benefit from your savings for life. In general, they derive from their special contracting conditions, and achieving better tax treatment through the transfers you make between them. Instead of selling them and having to face expenses, you can transfer them to other funds, in order to settle the operation without tax outlays.
But the most interesting thing for you is not the profitability that they can generate through their hiring, but the big money savings you can get if you know how to manage them properly. And that affects both their commissions and the transfers that can be made between them.
Even many banks offer you the opportunity to take advantage of interesting promotional offers to bring funds from other entities, including offering you cash to accept the operation. It will not be much, but surely you will have the essentials to pay yourself a little whim.
From the savings in its administration, to the elimination of the main commissions are just some of the advantages that derive from its hiring. And fundamentally if they are compared with other products, both for variable income (stock market, warrants, derivatives, etc.), and for fixed income (time deposits, corporate bonds, bank promissory notes, etc.).
What commissions will you have to face in a fund?
But there are others who can make this financial instrument more expensive. And among the most common, the depositories, subscription and redemption stand out. But be very careful since recently another new label has appeared, called successful, which can increase your expenses by up to 20%. If you have read correctly, despite the large percentage.
As a result of the collapse in the price of these products, managers have tried to give more confidence to customers through this fee. It is simply that you will have to pay it if the objectives in its performance are achieved. From this dynamic, if you generate capital gains, you will do very well, but you will have to face very harsh conditions. In return, if you do not obtain benefits, you will not have to pay this commission.
Deposit commission: it will be the bank itself that retains it, but not in all situations, and in any case with softer margins than in other types. They are derived from the maintenance of these banking products.
Subscription fee: It is not usual for them to be charged on account, but you should know that it is generated at the exact moment you formalize the subscribed fund, in other words, at the beginning of the operation, and its amount is not very high.
Money refund commission: it is the amount that emerges when the invested capital is reimbursed, and as in the previous cases, it is not very usual that they are applied to you. Always under acceptable margins for your interests.
Whatever the case, and even though each investment fund has its own fees, these cannot exceed a maximum scale that applies to all investment funds, whatever their nature and composition.
Anyway, the most expansive is the one that affects subscription and exchange operations, that in no case will they be able to charge you more than 5% of the capital you invest. On the contrary, in the usual ones they move under more bearable percentages for your pocket: deposit (0.20%) and administration (2.25%).
You can make unlimited transfers
Investment funds It is not a product to have it for a few weeks and change to another. Definitely not, given that the recommended terms of permanence pass for a minimum of 2 or 3 years, where its effectiveness in improving savings becomes more evident. As stated by the managers of these financial instruments.
Nonetheless, There are situations where a substantial change in the investment portfolio will be necessary., to try to make its performance greater, and be able to adjust to all the situations that originate the financial markets. Whatever the case, there are many scenarios that are more likely to make these operations effective among investment funds.
- Faced with an obvious error in our fund selection procedure, and that will require a timely and urgent rectification of the same.
- In changes of economic cycles, or basically temporary, which will require other models more appropriate to the new situation, even varying their administration.
- In situations in which its evolution -for several months- does not meet the expectations createdand a change in the composition of our fund portfolio is required.
- When financial market conditions require vary the management model, as an example, going from a variable income fund to a fixed one, mixed to variable, etc.
How to save money on your hiring?
The great offer that these products present also helps to design a strategy to meet these objectives, and that you only dedicate yourself to selecting the best models with respect to the benefits that they will provide you in the coming years.
From these variables it will be necessary that from now on you import a series of tips that will be of great advantage to you to make up your investment portfolio. And if you have any questions, you can consult your usual bank, which surely has a service of professionals who will surely solve any doubts you may have about this product.
- Against funds with similar characteristics, you should opt for what includes the least expansive commissions and expenses. This procedure will help you to achieve greater profits in each operation that you develop.
- Analyze each fund in depth, to check what type of commissions you will have to pay. It is probably more than one, mainly in equities.
- You can find funds, with excellent returns, that are traded with minimal commissions, around 0.75%.
- Consult the offer of funds presented by the bank with which you operate, because your commissions are probably not that high.
- Its convenient that have all these products contracted in the same bank, because of this dynamic you will be able to make unlimited transfers, without any economic cost to your interests.
- You should know that commissions, in general will be discounted from the prices of their securities, and in no way on the amount of the operation.
- It will be more profitable than opt for national funds, since they can be equally profitable, but with less expansive commissions.
