But first of all. What is a Common Investment Fund?
A Common Investment Fund (FCI) is a collective investment instrument made up of different financial assets (for example, shares, bonds, fixed terms, etc.).
Each Common Investment Fund is managed by a group of experts in investments, stocks, bonds, etc. These experts will seek to achieve a profit target with our money and with that of the rest of the investors.
What about money market funds?
The Argentine Chamber of FCI (CAFCI) defines them as “a very conservative and appropriate investment for those who want to invest their money in the short term, with immediate liquidity and free of price fluctuations.”
These funds have two particularities that you can take advantage of:
- They have no market risk
- Immediate liquidity: money is available when you need it. They do not have redemption terms of 24 or 48 hours as is the case with other types of fixed income or variable income FCI.
The Money Market FCIs are ideal so that you can put the money that is “stopped” in the savings account to work, waiting for the expiration date of the credit card to arrive, for example. They are the most used in Mercado Pago and Ualá, for example.
How much would you earn if you invested in a traditional FP?
The National Bank allows Simulate an investment in 30 days (you cannot withdraw the money before that period, nor invest for a smaller number of days), and with an investment equal to $161,175would be obtained at the end of the month $9,934.83. It responds to a 75% annual nominal rate.
After the inflation data for December was known, the Central Bank of the Argentine Republic (BCRA) published a new “Monetary Policy Statement” that is directly related to what will happen to Fixed-Term investments.
Thus, although the monetary policy rate remained unchanged and the entity assured that “it will continue to act prudently in the face of the evolution of the inflation rate”, it ratified the objective of “calibrating the interest rate in positive territory in real terms”. This means that the monthly yield of the Fixed Term must be higher than the inflation rate of those same 30 days.
“The monetary authority considers that keeping the reference rate unchanged will contribute to the gradual deceleration of inflation in the medium termconsolidating financial and exchange stability,” the statement explained.
How much would you earn in the PF if you invested $65,000 pesos?
A traditional 30-day investment has a return of 75% annually (6.25% monthly), which means that those who invested with this instrument in December earned just over 1 point of inflation for the month.
On the other hand, if we consider an investment equivalent to a mobile minimum wage ($67,743 in the month of February), at 30 days, interest would be earned for $4,175.94 ($71,918.94, capital plus interest in one month)
Source: Ambito
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