One of the biggest drawbacks when hiring Investment funds they are the commissions that their holders have to face. Not surprisingly, this class of financial products do not have a single commission as in the purchase and sale of shares on the stock market. But on the contrary, different commissions and of different nature can be applied. All this will depend on the investment fund chosen and above all on the manager in charge of marketing the product. To the extent that in their entirety they can reach 2% on the amount invested.
Not in all mutual funds the same commissions are charged. Not much less. The difference between what is a national investment fund and another of an international nature can include differences in payments of more than 1%. For this precise reason it is very important to opt for models that are not very demanding in this regard. Because in addition, why pay more in commissions for a fund when another of the same characteristics contemplates cheaper rates for households?
Through a few simple tips from now on you will be able to make investments in this investment product in a more rational way and containing the expenses with regard to the payment of its commissions. Because you should know that the commissions are applied to all funds, not only in fixed income, but also those based on variable income, monetary, alternative management or mixed content. In this sense, no exemptions if you want to invest your money in any of the investment funds.
Save in mutual funds
It will be very important that you know first that there are many kinds of commissions in this kind of financial products and of course many more than you think at first. There are some that are mandatory in all investment funds, such as those of management and the deposit denomination is discounted daily from the fund's share value. So that you practically do not notice this expense in the investments, although in reality they are deducting it little by little. In these, the main strategy to save some money in the operation is to go to those models that have lower rates. In this sense, there are funds with only 0,6% commission and that can be perfectly profitable.
Because one thing you have to be very clear from now on is that because you pay more money in commissions it does not imply that your profitability must necessarily be higher. It is not related to the one with the other and to the point it is so that investment funds with lower commissions are often the most profitable at the moment. Your choice should be focused on the future profitability that this financial product can offer you. It will not be a lot of money that you save with the application of this strategy, but at least it will serve you to obtain more capital gains in each of the operations carried out in the financial markets.
Avoid the most expansive commissions
In investment funds, the commissions are not fixed, but on the contrary, they are variable. This in practice simply means that they will never be able to exceed a few intermediation margins by the management companies that make this product for investment. However, they have absolute freedom to apply and quantify them, with as many commissions as they deem appropriate. A rule of thumb to contain expenses in this type of investment is to avoid the most expansive rates. In many of the cases they are a very important ballast so that you can make the savings profitable effectively since they eat a very large part of them.
This fundamentally affects the so-called optional commissions: and what are these really? Well, we are referring to the commissions of subscription, redemption or distribution. You have the great advantage that they are less common in investment funds, but they can still represent more than 1,50% of the capital of the operation. Especially when they charge you more than one commission of these characteristics. Not surprisingly, it can be a feasible move on your part if you are going to invest a lot of money in this financial product. But certainly not for very modest amounts where you can limit the competitiveness of the investment fund.
They are discounted from the quotation
In any case, some investment funds discount these commissions. of contributed capital or accumulated earnings, depending on the model you select at all times. In this sense, it is very important that you opt for investment funds that do not have more than commissions for their hiring. Because what really matters is that it is profitable for the next few years and it will not depend on you paying very high commissions. This factor is governed by other more complex factors and by the functioning of financial markets. It is that simple and you will have to take it into account from now on to save more money than you initially think.
On the other hand, it is more profitable for you to pay higher commissions in investment funds if your operations are going to go to medium and long term. Especially because you will gradually amortize these expenses. In contrast to short-term operations where its application will be much more noticeable. On the contrary, medium and especially long-term investments are the most appropriate to create a savings bag for the time of your retirement. This means in practice that you can bear the cost of commissions.
Strategies to contain expenses
Of course, one of your main objectives should be aimed at saving money in investment funds. And what better way than paying less money for the commissions that are applied in these savings formats. There is no doubt that opting for national investment funds will be much more affordable than international ones. What's more, they can be equal or even more profitable and with less expense. You can opt for this model in the containment of expenses for commissions. It will not involve any effort and you will find very interesting funds to make your personal capital profitable.
Another formula to reach this same point is based on choosing funds that are made by the manager of the bank where you have contracted your investment funds. Many of the banks have this service: Bankinter, Santander, BBVA, Sabadell, etc. With a wide representation of these financial products and all their modalities, from fixed income funds to variable, through alternative or even monetary management. This proposal supposes you to subscribe the investment funds with the lowest commissions in the market. And with very few differences with respect to the profitability that other models designed by other management companies can offer you.
Avoid currency exchanges
Another key to saving money in these operations lies in the fact that you avoid a currency change when hiring your investment funds. Of course, unless it is completely necessary for the success of your operations in the financial markets. In this sense, you cannot forget that you will have other additional expense from the currency exchange. On the other hand, traditionally this class of investment funds are much more expansive in the application of their commissions. To the point that you can have an unnecessary expense and that you can avoid by simply changing your strategy.
In addition, to invest in these investment funds you must have a further learning in their operations and with a higher risk in them. In this sense, you can lose a lot of money if you make a serious mistake or do not choose the correct investment fund each time. However, it is a somewhat common operation among many small and medium investors and therefore if possible you have to limit this kind of movement with your money. Among other reasons because you can pay very dearly from now on.
Diversify investments
On the other hand, another source of savings in commissions is through an investment portfolio that is diversified. So that in this way, they can adapt to all scenarios that can appear in the financial markets, even the most negative of all. A good combination of equity and fixed income funds can be the solution to your problems, with commissions that are perfectly adjusted to the expectations you have to make your money profitable.
Although you have to pay a little more for the commissions presented by the managers. A very practical advice is to go to those who are in the lowest range of expenses. You can compare them to arrive at the funds that best suit your monetary possibilities. Not surprisingly, you have the advantage that there is a great offer in this class of financial products.