If there is a product that is collecting the savings of investors, it is none other than investment funds. Because it provides you many ways to channel strategies to monetize savings. Both from approaches from equities and fixed income. But without forgetting other formats such as monetary, alternative or even linked to raw materials or precious metals. Almost all the financial assets that you can imagine. Even the most original and innovative that managers have been creating.
Investment funds allow you to improve the returns that different banking products offer you at this time (term deposits, promissory notes or state bills). Right now they only give you around 1%, something that funds can exceed. Even if with higher risks because profitability is not guaranteed. Rather, in a large part of the cases they would depend on the evolution of the financial markets. In return, you can choose different investment models depending on the profile you present as a saver.
But for your proposals to come to fruition you will have to make a very balanced selection of funds. Where diversification prevail above other strategies. In this sense, you should not divert all your savings to a single fund. Because the effects can be very detrimental to your interests. To the point that you can get more than one surprise during this investment stage. In any case, you can apply some initiatives so that your investments develop correctly. And within a few years you will be in a position to enjoy the returns generated on your invested capital.
Investment funds in fixed income
If you want to make a truly balanced and safer portfolio, you will have no choice but to include fixed income financial assets. In the proportion that you consider most appropriate depending on your aspirations. A very useful proposal is to opt for the safest bonds, such as from Germany and the United States. This strategy will provide more security to your investment fund portfolio. In addition, it will be one of the most effective ways to protect yourself from the most unfavorable scenarios for the financial markets. Even with obtaining returns on savings, even if these are minimal.
In any case, if your expectations are more aggressive, you always have the opportunity to opt for the peripheral bonds. From countries like Portugal, Italy, Greece or even Spain itself. For a very simple reason to understand and that is that its revaluation potential is much greater than in other products of these characteristics. Although it is also true that the risk you assume with your hiring is higher. However, you can opt for this strategy under a minimum part of your financial contributions.
The bag always in the bottoms
Whatever your investment strategy, financial assets from the equity markets should not be lacking. It is the clearest way to take that leap you want to improve the interests. Although, on the contrary, it can cause the balance each year to be more negative than normal. But with the advantage that you can do it in a diversified way. That is, without the need to pour all your money into a single market value. You have investment funds of all characteristics, from the most defensive or conservative to those with an aggressive profile. It is one of the advantages provided by this class of financial products such as investment funds.
Through this strategy you can combine stocks, sectors and indices of equities. Both in national markets and outside our borders. There are no limitations on the models that management companies have been developing. Where you have a wide offer to choose from from now on. That you can mix it with other financial assets of all trends and nature. So that in this way, the possible losses that you may obtain with the most limited subscription of investment funds are remedied.
Combine both investment models
Either way, you can also opt for an intermediate model that consider all sensitivities. They are the so-called mixed funds and are represented under percentages that admit all possibilities. Well, this model should also be present in your next investment portfolio. At least you will have to dedicate a part of your savings to this mixed alternative. It is a product to which management companies are dedicating more and more resources. Not surprisingly, you have a lot to choose from and you will have no problem meeting your investment needs.
This class of investment funds can also incorporate other financial assets of special relevance. As for example, monetary options or alternative investment models. It is another strategy that you have at the moment to protect economic contributions in the most adverse economic scenarios. You will have greater defense in these kinds of scenarios so little desired for all savers. Therefore, it is another option that should not be lacking when designing the portfolio of these financial products. With the main objective of increasing the balance of your checking or savings account.
Monetary, the safest option
Nor should it be missing in any portfolio, especially that of the most defensive profiles. Because they are very stable and show hardly any differences of special importance. That is, the gains if they are given are minimal. Although in return it is very difficult for them to depreciate, even if the general scenario is the worst possible. This is one of the reasons that lead to you having to dedicate a part of your savings to these management models. Its effect is similar to as if it had immobilized money. That is, you neither win nor lose with their positions.
In any case, it is a choice that is more suitable for times of economic crisis. Where the fall of the financial markets is generalized. Because provides more stability than other investment funds. Being a very useful position for specific periods and not excessively dense in their duration. In any case, it is also a very suitable product for making transfers from fixed income investment funds and especially variable ones. Both in one direction and in another. Because they are versatile to develop this kind of actions that aim to preserve your interests as a small and medium investor.
Alternative funds: the third way
In all cases, you can opt for a third model that departs from the traditional investment fees. With approaches as disparate as it is opt for volatility or the most relevant precious metals. But for this strategy to develop successfully you will have to perform it under upward trends. So that in this way, you are in a better position to take advantage of this general scenario. It can have very beneficial effects for the most difficult moments of the economy. Although this class of products should not be subscribed under not very high amounts. But on the contrary, rather limited and controlled with regard to the periods of permanence.
This savings model is the least conventional of all and is applied at very specific times. On the other hand, they are not well known by small and medium investors. To the point that they are one of the most unknown funds by users. Where it is quite true that the offer by the managers is less overcrowded, both in their number and in the proposals developed. In this sense, it is necessary that you know its composition to avoid more than one unpleasant situation for your interests.
Reduce possible losses
As you may have seen, you have more than one idea to have a truly balanced investment fund portfolio. From completely different approaches and that they are aimed at all kinds of small and medium investors. Where you will only have the last decision yourself and what you want in your relationships with the always complicated world of money. In spite of everything, one of the keys to achieving your goals will lie in a broader diversification of savings.
And as a last proposal, there is always the resource that these products you can combine with traditional banking models. As for example, with high-income accounts or time deposits. From positions that generate a fixed and guaranteed return every year. Although this is minimal and with really limited mediation margins. But that you will be able to compensate with the possible losses that you can obtain in the pure and simple investment. So that in this way, the loss of capital is not as abundant as you initially thought.
Because the point is that your funds do not have significant declines. Especially in the most difficult times for the financial markets. Moments in which you consider the status of your investments and it is necessary to carry out the odd transfer between the selected investment funds. Whatever its nature.