When referring to a sicav we are not directing first of all to an investment model. In many of the cases linked to people with higher purchasing power and who use these investment tools to make profitable your savings much more efficiently and with a series of advantages for your personal interests. Because in effect, the so-called sicav is not a product for any citizen, as you will see from now on. Hence the controversy with these models since they do not enjoy excessive popularity among small and medium investors due to their special characteristics.
But it is time for you to know what a sicav really is. Well, it is fundamentally a type of Collective Investment Institution of a corporate nature, whose exclusive purpose is to raise funds, assets or rights of the public to manage them and invest them in goods, rights, securities or other instruments, financial or not. Corresponds to the acronym for Variable Capital Investment Companies.
However, the controversy that these financial products have unleashed is precisely because of their taxation. Or to put it with a better understanding due to its low taxation. To the point that in many cases, a good part of the users wonder if these investment models are really legal or comply with regulations investment in Spain. Not surprisingly, SICAVs are always associated with millionaires, entrepreneurs and people with high purchasing power in general.
Taxation of sicav
When talking about this financial product, your first connection is always from the tax point of view. Because in effect, the operations carried out they pay only 1% in Corporation Tax. This is one of the main differences with respect to those made by small and medium investors who, on the contrary, pay taxes on the capital gains obtained. Through any investment instrument: dividends, purchase and sale of shares of stock on the stock market or others in general. With a notable difference between what has to be paid between one or another investment format.
From this scenario, it is always desirable that you subscribe the Variable Capital Investment Companies. But of course, this is very difficult for average users. Among other reasons because they have very harsh and restrictive conditions. So, the end result is that you will not be able to contract this class of products intended for investment. In any case, it will be convenient for you to know what the requirements that it will impose on you for a participant of these so elitist funds.
Requirements of this financial product
- A company with these characteristics must comply with a series of requirements, which are the following:
- This class of companies must be formed by at least one hundred shareholders which is what determines in the end that it is a sivac.
- You need a contribution in the form of minimum capital initial 2.4 million euros.
- A very important detail for its resolution is that it must be supervised and controlled by the National Stock Market Commission (CNMV).
- Investments made through this peculiar investment model will be charged with the Corporation tax the 1%.
- Although after the transaction is formalized, then it will be taxed as a return on movable capital between 21% and 27%. That is, the same as the purchase and sale of shares on the stock market and other financial products in general.
Advantages of sivac
If you are going to enter a Variable Capital Investment Company in the next few days, you should know all the benefits of this action. Of course, they are more than you can imagine from the beginning and they are not limited only to low taxation.
- They offer a taxation in Spain that is 1% instead of 30% of the normal Corporation Tax.
- It will allow you to perform a more exhaustive control of investments since in this sense it is very similar to traditional investment funds.
- Another of its benefits is that you can withdraw and transfer certain amounts of money, without any kind of commissions or other expenses in its management.
- A great novelty with respect to other management models is that you will be in a position to increase or decrease your investments.
Can you invest in these companies?
The question that you will be asking yourself at the moment is if you can enter to invest your available capital in any of these companies. Well, if it is really true that it is an investment for great fortunes, you do not have this door closed. Because the possibilities have been opened so that private investors like you can also enter to participate in one of these companies. How? Well, through a different mechanism such as buying shares of a SICAV in the Alternative Stock Market (MAB).
It is a way so that you can opt for this new alternative in investment from a somewhat more modest approach or if you want with major limitations as for your result. To give you an idea of what this investment would be like, it would be very similar to how you often do with mutual funds. With hardly any difference in terms of investment results. To the point that some managers market some of their funds under these commercial constants. With the only requirement of waiting for the number of one hundred participants to be reached.
If this condition is not met, you will not be able to subscribe the shares until cover all investors that these special investment funds require. Beyond this characteristic, they are listed like any other fund, depending on the portfolio on which they are based. With all kinds of financial assets, from those from equities to fixed income. Without forgetting at any time the alternative or at least non-traditional components. In this sense, there are no appreciable differences with respect to the more conventional investment funds. Being one of the formats that you can hire for several years and whose trend is clearly on the rise due to its high demand.
They are not just for the rich
Traditionally, this financial product has always been linked to great fortunes. It is very common for these people to have invested their savings and personal assets in the so-called Variable Capital Investment Companies. But this trend has changed substantially in recent years. To the point that you yourself are in a position at the moment to operate with this kind of investment tools. Not surprisingly, although a good part of these products are controlled by the people with the greatest purchasing power in the world, some like Torrenova or Bellver It works almost an investment fund. Both in the positive and the negative. To the point of settling as some of the most popular products that you can find in Spain from now on.
However, there are some small differences that you should take into account with respect to their management models. On the one hand, in sicav investors are constituted as shareholders of the company itself. As a consequence of this legal figure they have right to vote in the meetings and therefore a very relevant decision-making power. Something that does not happen if you subscribe the funds that are adapted to these characteristics. On the other hand, in funds similar to Variable Capital Investment Companies, the entry method is different. That is, you formalize participation when you can, not when you want.
Risk profiles of these formats
Variable Capital Investment Companies can maintain a high risk profile depending on the composition of their portfolio. Mainly because it will depend on your exposure to the equity markets. With a flexible feature that can ocular between 35% and 80% of the investment portfolio. To cushion this effect, this part of the portfolio can be minimized through a predominance of fixed income. With a proportion that can reach up to 80% of the exposure. In this way, the risks will be more nuanced than in the previous example.
Sicavs can be adapted to the profile of each investor. There is no single and non-transferable model based on the real needs that these people have. I mean, you have many models to choose from so that you can make the most of your family and personal assets more effectively. In this sense, the same as with another investment fund or other financial products. Not surprisingly, one of the main differences between both management models lies fundamentally in their tax factor.
On the other hand, Variable Capital Investment Companies can maintain other completely different investment models. For example, inflation-linked bonds, emerging fixed income in any kind of currencies, and even in some cases in less common financial assets such as loans or even the so-called high yield. In other words, you have many alternatives to invest your savings in these kinds of financial products. With greater flexibility in your daily management.