One of the options that investors have at hand this year is the contracting of investment funds. But they have the difficulty that the class of these financial products are many and diverse in nature. From derivatives of equities to fixed income or even from alternative options. In any of the cases, and within this context, the Investment Funds registered a positive return of 0,77%, for which they accumulate a profitability of 6,5% in the last eleven first months of the year, a historical maximum in the accumulated until November of last year.
One of the keys to not being wrong in this kind of investment is to carry out a diversification in operations. It is one of the best ways for small and medium investors to preserve their invested capital in undesirable scenarios that may occur in this current year. That is, so that our money is not deposited in a single basket, but on the contrary, it is formalized through different baskets made by the managers.
In addition, it can be a very effective investment strategy to improve the intermediation margins offered by these financial products. Under some percentages that will go depending on the profile presented by retail investors: aggressive, intermediate or conservative. In this way, substantially different model portfolios can be created that can generate very different results from one another. In any case, they do not have to produce from the same field on the chosen financial assets. They should come from sectors in investment that are very clearly differentiated from their conception.
Diversify by geographical areas
First of all, it is desirable that the same geographic areas are not chosen for each of the investment funds or financial assets that make up the portfolio from now on. It is necessary to select those that present a better tendency so that the money can revalue from the precise moment of the subscription of their titles. While on the other hand, it is very important to influence this aspect, which is very useful to carry out to carry out an investment strategy much safer than before and which can make us preserve savings over other kinds of technical considerations.
Within this method of working on the stock market, no less true is the fact that from now on, positions in the financial markets of Europe and the United States cannot be absent. As central axes in our investment and that will be complemented by a slight contribution in the funds with the best evolution in emerging financial markets. As for example, it can happen with those coming from the Indian, Chinese or even for the riskiest in Russia. They have a potential for revaluation that is much higher than in the more traditional stock exchanges, although they will have corrections of some magnitude due to their great intensity.
Combine fixed income with variable income
One of the keys to the success of our investments in products of these characteristics lies in a very prudent mix of both financial assets. In a proportion that fits the profile that we present as small and medium investors and that of course will determine the final result of the operation, in one sense or another. But that in none of the cases, should they be absent in our movements in investment funds in these next months that we have ahead. To the point that they must be very well analyzed in order to make the fewest possible mistakes in our selection of investment funds.
But you don't have to limit yourself to these major financial assets. If not, on the contrary, you can also opt for other monetary products or even alternative investment models. Under proportions that are already established by the managers that are in charge of marketing these financial products. Not only can they be more profitable from now on, but they can better adjust to the worst scenarios in the equity markets. With results that can surprise you with great attention.
Developed under active management
There is no doubt that active management can become one of the best investment strategies you have to diversify the invested capital. Because it can help you to solve the most unfavorable scenarios for the financial markets and where you can even make the money profitable with some solvency in the open movements in investment funds. While on the other hand, it is no less true that this investment system is constituted at this time as a way to
Under the active management system you have the great advantage that you can adapt to all the scenarios that can be created or generated. In this way, the portfolio of financial assets can be adapted according to the economic variables that develop over the years. Without you having to do anything yourself since it will be the manager herself who is in charge of modifying the investment portfolio. This operation is carried out from time to time and with changes that can affect practically half of the investment funds. Whatever financial assets these financial products are made of.
Portfolio composition
In some cases, these portfolios usually incorporate monetary funds as an element to preserve savings in the most delicate moments for the equity markets. Like a small alternative component to take advantage of the favorable trend of some financial assets. Although in a minority way because this is a riskier option than the rest and for this reason there is not too much exposure in their positions. While on the other hand, another financial asset that these investment products usually incorporate is public debt based on certain geographic areas that can add value to the investment of these funds.
It must also be emphasized that there are no limits to include in these models, only those that the management companies consider favorable, both national and outside our borders. Where in each moment it can be a different one as you have seen in the last formats that you have subscribed in recent years. From this perspective, it is true that you have many models to choose from and direct them to a period of permanence that is recommended between 3 and 7 years approximately. So that in this way, you can design an investment strategy that is successful and you are in a position to create a more or less stable savings exchange for the next few years that lie ahead. Depending on the characteristics that you contribute from the beginning since it is at the end of the day what it is about.
Evolution of funds
The Investment Funds have experienced a growth of 2.105 million euros and place their volume of assets at 273.429 million euros, 6,2%, according to the Association of Collective Investment Institutions and Pension Funds (Inverco). Wherein the Investment Funds accumulate an increase in equity of 15.915 million euros. Again in this period, the markets collaborated very actively to the growth of Investment Funds, maintaining the positive trend of the previous month.
In fact, the positive evolution of the equity markets has generated a reduction in risk aversion among participants, who have demanded Funds with high exposure to the stock market during the month. This, together with the growth in the value of the portfolios due to the market effect, has allowed the categories with exposure to shares to present growth of great magnitude in some cases.
By category of funds
Thus, the International Equity Funds show a growth in the month higher than 5% in percentage terms, and higher than 1.839 million in absolute terms. In the first eleven months of the year, International Equity Funds experienced the highest growth of all categories in percentage terms (25% increase). This means that 7.400 million euros more than have exposure to International Equities (in some of its variants). The Mixed Fixed Income Funds also registered net flows of positive input, which together with the revaluation by market allows this category to increase its volume of assets by 2,5% compared to the previous month (948 million more than in October).
Likewise, Mixed Equity Funds, that is, with a high exposure to stocks in their portfolio (between 30% and 75% of the total), show high growth in the month, and are only behind those of International Variable Income in terms of percentage growth in the year (19,8% more than in December 2018). On the contrary, Fixed Income Funds, Guaranteed Funds and those with an objective of non-guaranteed profitability experienced decreases in net worth in November that together exceeded 1.600 million euros.