Investment funds have become one of the financial products More popular where can you monetize savings. Not surprisingly, they are not formed as a single or homogeneous savings model. But on the contrary, it is developed under different edges that you can select to improve your income statement every year. From equities to fixed income, but without forgetting alternative or even monetary solutions if this is your wish. One of its great advantages over other investment formats are the many possibilities it offers you to find the appropriate return on your personal or family assets.
From this general scenario, nothing better than knowing which investment funds you have available at the moment. So that you can analyze and hire them based on the profile you present as a small and medium investor. You will surely see that they are more funds than you imagined since the beginning. Even from very innovative concepts to interesting ones to defend your interests at any time. Of course, you will not lack models to reach the most correct decision depending on the real state of the financial markets.
In any case, at this time you can detect in the market a wide range of backgrounds investment of all characteristics and condition. With hardly any exclusion at the time of hiring. Although it is very difficult to quantify which are the best funds since it is a very subjective definition depending on the profile that each of the small and medium investors contributes. It may be that for you it is represented by those based on equities, while for another user they are those that have the most representative bonds of international fixed income as components of their investment portfolio.
Investment fund classes
First, you will need to see the classification of these financial products. So wide that you can create from these moments some other problem in your choice. The list of these funds covers different ways to invest the savings from now on. Among those that stand out are monetary, fixed, variable, mixed, global and fund of funds. On the other hand, there are also subdivisions within these modalities. As for example, in the mixed ones that can group those who are defensive, aggressive, moderate, flexible or even depending on its management: assets or liabilities.
None is better or worse than another. But on the contrary they depend on the conditions presented by financial markets in every moment. Apart - of course - from the profile you present as an investor: moderate, aggressive or intermediate. You have so many investment funds that you cannot practically cover all the proposals made by the managers. What it is about is that you complement them from now on. It will be one of the most effective strategies to diversify savings from a very practical approach that defends your interests as users.
Guaranteed: minimum performance
There is also another category that are called guaranteed. These funds ensure you a minimum profitability and fixed every year. It may not be very demanding of your wishes, but at least you will get a fixed return every year of between 3% and 5% approximately. From these levels you will be able to exceed the interest rate they offer you, as long as minimum conditions are met that are not met in all cases. It is a product demanded by some small and medium investors who want to provide greater security to their economic contributions. But in any case, they prevent you from being able to access the best returns that are generated from the financial markets.
They serve to apply another class of investment strategies. And that they are intended for a very well-defined customer profile. Where safety prevails above other investment approaches. However, they can limit you from being in a position to take advantage of the good conditions of financial market conditions. Whatever the financial asset that your investment portfolio is made of. Because in effect, guaranteed funds refer to both fixed and variable income links. Even from other models in its management. In any case, it will be a new alternative to make your savings profitable from now on.
Way to manage funds
Another of the variants in which these financial products can be differentiated is by their management model. In this sense, an interesting concept is that of author funds, which are those in which the manager has more freedom when making investments, the investment policy is freer. Although the main difference lies in the active and passive formats. With respect to the former, they are characterized by the management itself who is renewing them based on market conditions. And that at each moment it can be a very different one. It is another resource for improve performance, even from the most adverse scenarios for financial markets.
While actively managed funds, on the other hand, they are much more static. Since they are raised and developed with very defined objectives from the beginning. Of which you can not deviate if you do not want to get away from your original approaches. They are the most common funds that you can find through the current offer. In which all investment formats are also present. From a very conservative administration to another that is distinguished by the great risk that their operations entail at any time.
Identity signs of these products
In any case, and for all of them, there are some links that should be taken into account from now on. Not in vain, the same investment fund It can have different classes depending on the commissions, currencies, minimum investment ... This is something that characterizes any investment fund, regardless of its nature. Don't forget it if you don't want to make a mistake that can cost you dearly from now on. With regard to commissions, they can be of various kinds: deposit, management, refund, etc. But don't be scared because not all are fulfilled at the same time. In any case, you can be more expansive than buying and selling stocks on the stock market.
In any case, one of the great advantages of investment funds is that they are adapted to all households. From minimal contributions Starting from 500 euros. Although there are some formats that are really much more demanding when raising these amounts up to 5.000 or even 10.000 euros. On the other hand, you can also be contracted in local currencies or in others that require a change that you must assume through additional commissions that will undoubtedly make the operation more expensive. Therefore, you will have to check if the operation will be profitable for you.
Different investment strategies
It cannot be forgotten either that these financial products you can acquire other more sophisticated variants. Of course this is the case when we find ourselves with funds of investment value, growth or blend depending on the investment strategy they choose. They are more complicated for your final subscription, but on the other hand, it can improve the interest every year. You must share these objectives in terms of the development of the strategy in which they are made. Because they provide substantially different investment models, where it will be very common for you to present a greater financial culture so that you can operate with them with greater guarantees of success. Do not forget if you want to optimize operations from now on.
On the other hand, funds with dividend distribution. So that in this way, you can have a fixed return every year. They not only affect variable income investment funds, but also fixed ones. With an annual profitability that can approach levels of 5%. In this case, you will need to consider whether it is worth investing in these management models. Because you should not only be governed by the remuneration that they offer you every year, but by other really important parameters. In any case, they are not the majority in the current offer generated by this important investment market.
The funds of absolute return It is another of the modalities that you can find at the moment. It is one of the most characteristic of all and it is very frequent to go to this management in savings. In some moments in your life they can be the most profitable of all. To the point that it is a modality that is increasingly influenced by management companies. Finally, there are also SICAVs that are intended for a more demanding user profile and in which not all small and medium investors can subscribe. They will need additional information that explains how it works and the composition of their investment portfolios. So that you come to the conclusion that mutual funds are a more complex product than you might think at first.