Investment funds are one of the preferred tools for many small and medium investors. As a real alternative to the low profitability presented by banking products and which are in about minimum levels since many years. In this sense, it is enough to remember that the main banking products (fixed-term deposits, bonds or high-income accounts) barely exceed levels of around 0,5%. As a result of the cheaper price of money and that has led to its profitability being at historical lows for several years now.
But in any case, the decisions are always directed towards variable and fixed income investment funds. They are the best known and where the monetary flows of users, to the detriment of the rest. But it must be remembered that there is life beyond these investment models within the funds themselves. In order for you to open yourself to new business opportunities, we are going to expose you to another class of investment funds that you can subscribe from now on. Not surprisingly, they can help you get out of more than one trouble in the coming months.
Many of these mutual funds are really very traditional, but others of course that they will surprise you by their originality and even for the financial assets that they include in their investment portfolio. Because what it is about is that you can make profitable the savings above the returns that the banking products offer. In any case, there is one thing that you should be very clear from now on and that is that these savings products do not guarantee you any fixed return. If not, on the contrary, it will depend on the evolution of the financial markets.
Distribution by financial assets
Regarding your investment portfolio, it should be noted that the heritage by categories of IICs worldwide at the end of 2018 is distributed as follows: variable income accounts for 45,4%, fixed income 20,5%, mixed 12,5%, monetary 11,9, 1,6%, real estate 8,0% and the rest 4,4%. The assets invested in ETFs worldwide increased again and stood at 2018 trillion euros in September 3,87 from 80 in December the previous year. Of these, 16% are variable income and XNUMX% fixed income.
As regards the net subscriptions Until 2018 they are 791.308 million euros (153.401 million euros in the third quarter), below the 1,81 billion euros in the same period of 2017. Of the net subscriptions in CIS accumulated until September 2018, 36,7, 276.477% correspond to European IICs. By country, it is worth highlighting the 34,9 million net fund-raising of the UCITS in the United States (XNUMX% of the global total for the year), mostly focused on Fixed Income and Variable Income UCITS
Investment funds: monetary
This is one of the traditional models par excellence of the investment landscape, although with the problem that its profitability until now is really minimal. With intermediation margins of only a few few tenths of a percentage in the best case. This refers to investment funds based on the euro, which is the most stable product and far from movements of instability and perhaps even with the volatility so typical in equity investment funds.
The volatility present in the financial markets in recent months has once again had a negative influence on the evolution of the investment fund assets during the month of November. Thus, the volume of assets of the securities investment funds registered a decrease of 1.382 million euros in November, standing at 265.140 million euros, 0,5% less than in October. In 2018 as a whole and despite the poor performance of the markets in 2018, the assets of investment funds experienced a growth of 2.017 million euros, 0,8% more than at the end of 2017.
Guaranteed funds
Within this class of products intended for the most classic investment It cannot be forgotten that guaranteed funds play a very important role in recruitment by small and medium investors. For a very simple reason and that is that they are the only ones that guarantee a fixed performance every year. On the other hand, it cannot be forgotten that guaranteed funds led the ranking of net subscriptions for the month of November with 252 million euros and accumulated 266 million euros in the year.
This class of investment funds provide greater security to small and medium investors, among other reasons because the preservation of invested capital above other considerations. For example, the increase in profitability in this class of product that has a greater predilection among users in our country. In any case, it must also be taken into account from now on that this class of investment funds are fundamentally characterized by their low volatility.
Socially responsible funds
They are one of the great unknown by investors when they can be the same profitable as the rest. But with a substantial difference and that is that this very atypical modality is based on the fact that other criteria are chosen to make up the portfolio of the same. That is, depending on environmental criteria, social and corporate governance, among other ways of opting for an investment model. The great contribution of this class of products is that they allow participants to be consistent with their way of thinking or simply understanding life.
On the other hand, the so-called socially responsible funds are being marketed more frequently among fund managers. One of these examples is represented by the BBVA Sustainable fund aimed at investors from conservative profile, managed with SRI criteria that completes the range of socially responsible funds. Another option is the Sustainable Future, which is a global asset allocation fund that invests in public debt, credit and equities applying ESG criteria from both governments and companies.
Based on volatility
It is known to all that the past year has not been very positive for the investment fund sector, which has ended in negative. In all modalities, both in variable and fixed income or even from alternative investment models. If this year were the same, a solution could come from another of the investment funds less known by small and medium investors, such as those based on volatility. To the extent that they may be the more profitable within the current conjunctural moment.
In this sense, as long as equity markets show greater instability, these special investment funds will behave better. A small part of our available capital can be used to open positions in these financial assets so special and try to improve the income statement from now on. Although it is also true that their operations carry a greater risk and that there will be no choice but to control it through a punctual monitoring of their positions. Even if there is a need to transfer it to another modality within the investment funds.
Real estate funds
It may be time to invest in the brick again and obtain capital gains through these kinds of operations in the financial markets. Not surprisingly, these operations have grown 13% in the past year, although there may be slight variations from now on. In this sense, different studies and reports from the sector suggest that in 2019 housing prices will rise, going from 1.650 euros per square meter that is currently being traded to about 1.800 euros per square meter.
In any case, it seems a less intense deviation than that generated in previous years. Now what will have to be checked is whether this year will produce a turning point in the purchase and sale of homes. In this sense, there are a good number of investment funds that are specialized in this important sector of the Spanish economy. Although they have commissions that are stronger than in the other investment models.
On the other hand, it is also possible to combine this strategy with other financial assets, both from equities and fixed income. As a formula to diversify investments in the event that instability is permanently installed in the financial markets. In this way, there is no doubt that you will be protecting your savings in a more correct and effective way. Beyond other technical considerations and maybe also from the point of view of its fundamentals. In any case, it will be another of the models in investment funds that will have to be taken into account in this year that presents itself with many doubts.
In this sense, different studies and reports from the sector suggest that in 2019 housing prices will rise, going from 1.650 euros per square meter that is currently being traded to about 1.800 euros per square meter.