Mutual funds are a safe and advantageous way to invest and achieve profitable savings compared to other types of investment. Above all versus buying and selling stocks In the stock market, which are operations that carry more risk due to the evolution of the equity markets. Even when they are also exposed to small problems that can originate in the portfolio of small and medium investors. After all, it is a financial instrument with its lights and shadows, like almost all the ones you currently have available.
The solidarity assets of collective investment (funds and companies) experienced in February an increase of 3,478 million euros and stood at 463,352 million, which represents an increase of 0.6% compared to January, according to the latest data provided by the Association of Collective Investment Organizations and Pension Funds (Inverco). In the first two months of the year, the volume of assets increased by 1.8%. Where the number of participating accounts stood at 14,836,455, which represents a decrease of 0.4% compared to December 2018.
February has continued with the positive trend of January and there have been revaluations in the equity markets, which have allowed national investment funds to register. the best start of the year in profitability of the historical series. Thus, the volume of assets experienced an increase in February of 2,373 million euros (0.8% more than the previous month) and stood at 264,491 million euros.
Investment funds: growth
The growth in the volume of assets is due to the good behavior of the markets in the period, favored by the behavior of the flows, which after several months of amortizations reversed the trend of previous months, showing a slightly positive result up to 49 million euros of net subscriptions in the month. In February, all categories experienced increases in equity of greater or lesser magnitude, with the exception of national equities and absolute profitability, which were hampered by the amortizations recorded in their categories, given that their performance by profitability was positive.
They led the volume growth fixed income funds and monetary funds, with increases of 843 million euros. Fixed Income manages to compensate for the fall registered in January and accumulates in the first two months of the year an equity growth of 512 million euros. On the other hand, the monetary ones registered a growth of almost 930 million euros in 2019. The evolution of the variable income of the mixed funds was also positive in the period. Thus, mixed equities grew by 263 million euros and mixed fixed income did so by 269 million euros. In the whole of the year they accumulate a growth of 1,526 million euros.
Status of global funds
Global funds also evolved positively in February and increased their assets by 525 million euros. In the year as a whole, in absolute terms, it is one of the categories that greater increase accumulates, with 1,663 million euros more than in December 2018. Only surpassed by international equity funds, with a growth in the volume of assets in the first two months of the year of almost 2,089 million euros.
In the opposite direction absolute return funds its assets were reduced in the period (509 million euros less) and in 2019 they already accumulated a decrease of 591 million euros. As well as national equities, which registered a slight decrease in equity in February of 14 million euros, even though in the first two months of the year it experienced a growth in the volume of assets of 274 million euros (a 4.4% more than in December 2018). ).
Subscriptions and refunds
Following the dynamics of January, investors reversed the trend of previous months in terms of flows, probably positively influenced by the good mood of the markets in the first two months of the year. Thus, investment funds close February with a positive net subscriptions of 49 million euros.
The sentiment already verified the previous month of an increase in risk aversion in the national member, after the high volatility in the last month of 2018It also manifested itself in February, generating positive flows in the most conservative categories. Thus, the funds with the highest net subscriptions in the month were the monetary ones with 842 million euros. They also lead the net inflows in 2019 with 925 million euros.
Increase in guaranteed funds
Guaranteed funds follow with 253 million euros of net flows entry in February. Passively managed funds once again had positive subscriptions in February (134 million euros) and accumulated almost 327 million euros of net inflows in the year. Mixed funds slightly increased their volume of assets by € 7.5 million. Only the international mixed fixed income registered positive net inflows in the period (274 million euros), which managed to offset the net outflows of mixed equities and mixed euro fixed income. In the year as a whole, they accumulate net reimbursements amounting to 306 million euros.
By contrast, equity funds in euros (excluding Spain) and those with absolute returns led net outflows for the month, with 572 and 302 million euros, respectively. These categories are also the ones with the highest net repayments in the first two months of the year with 487 and 523 million euros, respectively.
Profitability of these products
Throughout February, equity markets have performed positively and closed the month with revaluations compared to January in most world indices. The Ibex 35 registers a monthly return of 2.4%, compared to the 4.4% of the Eurostoxx or almost the 3% of the S & P 500. In fixed income markets, the IRR of the The German 10-year bond fell slightly 0.16% from 0.18% in January, as well as the yield of the Spanish 10-year bond that has fallen to 1.26% from 1.32% in January.
The risk premium in Spain has closed at 100 bp (105 bp in January). The exchange rate of the euro against the dollar closed at 1.14, which represents a depreciation of the euro of 0.6% compared to the last day of January. In this context, mutual funds registered a positive return of 0.91% in February 2019, so the accumulated return for the year stands at 3.26%, which is the best start of the year until February of the historical series. Almost all categories closed the month positively, mainly those with the highest exposure to stocks. Thus, equities in the United States registered the highest profitability of the month (3.4%) and accumulated a revaluation higher than the 11% in the year.
Member account
With regard to this parameter, to establish the importance of these financial instruments accepted by many small and medium investors, it is very important to highlight it today. Because in fact, the number of shareholders accounts in national investment funds it increased slightly in February (8,588 participants more than the previous month), and placed its figure at 11,164,033 participants.
Where the most relevant data that this study has not provided on the behavior of investors in mutual funds is their progressive growth. Not surprisingly, national investment funds register the best start to the year in the historical series, with an accumulated profitability of 3.3% in the first two months. After a significant drop in profitability, which coincided with the last two months of last year. Where they registered considerable losses in their profitability, affecting all types of investment funds.
Evaluation in Europe
According to data from EFAMA, the volume of assets of the European Collective Investment Organizations stood at 15.16 billion euros in December 2018, which represents a decrease of 5.5% in the last quarter of the year (16,030 million euros in September 2018). In 2018, equity has fallen 3.0% from 15,620 million euros in December 2017. Ireland was the only country in which the volume of assets increased throughout the year (1.1%). While the United Kingdom and Denmark have registered the largest declines in wealth in 2018, with falls above the 9%, above the European total (-3.0%).
By type of asset, 27% of total European assets is concentrated in equities, followed by fixed and mixed income, with 23% and 21%, respectively. The distribution of assets by investment category in Europe is very diverse between different countries. Thus, by way of example, while in the United Kingdom or Sweden the investment in equities represents around 50% of the total, in Italy it does not reach 7%.
According to data from EFAMA, the volume of assets of the European Collective Investment Organizations stood at 15.16 billion euros in December 2018, which represents a decrease of 5.5% in the last quarter of the year (16,030 million euros in September 2018). In 2018, equity has fallen 3.0% from 15,620 million euros in December 2017. Ireland was the only country in which the volume of assets increased throughout the year (1.1%).
