One of the most favorable operations for the interests of small and medium investors is materialized through the transfer between investment funds. Not only can it be a very profitable move, but it does not cost a euro to the participants of this financial product. As long as they are carried out from the same financial institution, whatever it may be. On the other hand, with this special strategy, savers will avoid paying any tax for the benefits accumulated during all savings. Of course in the event that there were. Until the appropriate rescues are actually made, partially or totally.
Transfers between investment funds is an operation that is open to all investors, without exclusions of any kind. It really does not matter whether they are fixed income, variable, mixed, alternative or other funds. Not in vain, you can direct to any financial asset on which the investment fund is based. To the point that it is a clear advantage over other financial products, even some very similar to investment funds themselves. Where what matters is that through exchange of funds you improve the profitability of your investment proposals.
In any case, you should be guided by more or less objective criteria if you want to achieve this objective in operations. It is very important that you apply it with some discipline so as not to fall into possible mistakes that could make you lose more money than expected in this financial product. Because at the end of the day what is involved with this operation is that you have a much more powerful investment portfolio for the next few years or to where you want to close the positions yourself. Because as you know in investment funds you can undo positions at any time, without limits of any kind. Unlike warrants or exchange-traded funds where you will have no choice but to wait for expiration dates.
Requirements to carry out transfers
Any transfer between investment funds must meet minimum requirements to be completed correctly. In the first place, it will be completely necessary for the funds to be deposited in the same financial institution. Then the operations are carried out on the same financial product, in this case on investment funds. And in third and last place that there are no partial or total sales on them. If you meet these requirements, you will be in perfect condition to make a transfer between your investment funds.
In any case, you can take a double strategy. Reorient your investments partially or totally. That is, you can transfer some of your investment funds or, on the contrary, modify your entire investment portfolio. This decision will basically depend on what your goals are, but above all on the profile you present as a small and medium investor. That is, depending on whether you are an aggressive, intermediate or conservative saver. Depending on this important parameter, I would choose one or the other investment funds. Not surprisingly, you have a wide offer to choose from since it is one of the most prolific financial products in the markets.
First key: diversify
To carry out a transfer between investment funds in a correct and effective way, the first golden rule is not to transfer to a single investment fund. You do not have to do this under any circumstances since it is a mistake that you can pay dearly from now on. You must develop it in several investment funds, but what is more important, that they contain various financial assets. Between equity, fixed, alternative or monetary funds. Not surprisingly, you have a lot to choose from and you should distribute your money fairly to protect yourself from the most adverse scenarios in the financial markets.
In another vein, this selection must formalize Under a equity criterion. In other words, not overly promoting one financial asset over another. This is one of the keys to the success of your operations in the investment sector. Above other technical considerations and maybe even from a fundamental point of view. Don't forget it if you don't want to have a negative surprise from now on. Because it is one of the most common mistakes investors make.
Second key: different assets
Of course, directing all your savings to fixed income funds, for example, is not a good idea. Not much less. It is convenient to distribute them among products of different nature so that they can be complemented correctly. Especially in the worst moments of the financial markets. In a proportion that is adequate and that will be determined by the investment model you have at that time. In this sense, there is no doubt that you have at your disposal many strategies to employ and all of them very valid from any point of view.
On the other hand, you can enhance a certain financial asset based on your growth expectations in operations. In other words, if you are more aggressive, you should delve a little deeper into investment funds based on equities. While on the contrary, if you want to protect your money above other considerations, then the solution may be to further enhance fixed income or monetary funds. In addition, in this sense, banks can help you make the decision by incorporating model investment portfolios that you can replicate in all their intensity.
Third key: secure positions
If above all you want to protect your positions through this investment medium, you cannot forget to choose a monetary Fund. Of course, its profitability will not be very exciting, but at least you will have the guarantee that there will not be great variations in the amount of your savings. It is a very practical idea in very unrewarding scenarios for the financial markets and where you can lose more money than you initially think. In this sense, if you are a defensive investor, there is no doubt that a monetary fund should not be missing in your investment portfolio.
It should also be remembered that it is very effective that you support your investments through investment funds that are reliable and that are backed by the prestige of a good manager. This factor is more important than you think since it is a strategy that can give you much more revenue than you think. Not surprisingly, there are some international fund managers that have very competitive funds and that offer very interesting returns every year. That is where you should direct your money from now on if you want your investment portfolio to develop smoothly or at least to be a little more controlled.
Fourth key: investment terms
It is also very important that you take into account what the expiration period of your investment funds. Because depending on this important variable, you will have to choose some products or others. You will have no choice but to opt for this unique investment strategy since they will be much more effective and you will be able to make your money profitable in a more optimal way than before. Because in effect, it will help you improve your positioning in the financial markets and above other more conventional or traditional strategies.
In this sense, a very practical system is to opt for intermediate periods of permanence so that you can adapt to all kinds of scenarios, even the most unfavorable. You should also be aware of opting for an investment fund that has a faster resolution. In case you need the money for any financial need and you can make some kind of partial or total sales to recover part of your money. Not surprisingly, keep in mind that there are products that have these characteristics.
Fifth key: active management
It will be very important that a good part of the management of your investment funds is carried out under this characteristic. Of course, it will be one of the best strategies to adapt to all kinds of scenarios, without you having to do anything. The manager itself will be in charge of select the best financial assets in every moment. To the detriment of passive management, which is more advisable in bullish periods in financial markets. You can also opt for these two investment models in your portfolio of funds.
On the other hand, active management allows you to be much more flexible in your investment approaches. Although on the contrary, they usually have commissions that tend to be more expansive due to the characteristics of the product itself. In addition, it can have a longer route in terms of its duration since it is indicated for both bearish and bullish periods, indistinctly. To the point that their performance may be higher in all the terms to which they are directed. If you import this idea of course things can go better from now on. Whatever profile you present.