Investments: the 3 instruments most chosen by Argentines to earn an “extra” at the end of the month

Elena AlonsoEconomist from Grupo Broda, investment expert spoke with Ámbito and recommended the following options: Common funds, remunerated accounts in financial apps and sureties, as useful tools for day to day.

“Common investment funds are good because you can place them and there are some that you redeem the same day or the next day. On average they are having an average rate of 83% depending on the fund manager. For me it is not the most convenient, you can Appeal to the virtual wallets that you put to invest the money and they pay you 84% and 85% and you always have the money available.The downside is precisely that you have it available and sometimes you don’t use it as a means of saving and control is more difficult. Money markets can be done through a bank or through a broker”

“Common funds are exempt from taxes on debits and credits, which is why this option is better for companies. But for physical persons, virtual wallets, FCI and short-term stock securities.”

Mutual money market investment funds

These common investment funds are known as immediate liquidity or T+0. They are also called money market, money market or fixed-term funds. Its main objective is to invest in assets that generate interest, but always maintaining a focus on liquidity and minimizing volatility.

These funds usually invest in instruments such as fixed terms (both traditional and pre-cancellable), sureties, interest-bearing accounts and other funds. They are especially suitable for periods of time less than 15-20 days. In the last month, they had a return close to 8%, and in the last year, 85%.

According to a MEGAQM report on the fund market, today 51.6% of the industry is represented by money market funds. The Argentines had placed $5.560 million in this type of vehicle at the end of June.

sureties

The surety bonds are similar to fixed terms, but with shorter terms, ranging from 1 to 120 days. These financial instruments are backed by the market and two parties participate: the underwriter, who is the investor, and the taker, who needs money. The underwriter lends money to the borrower for a specified period, at an agreed interest rate.

In turn, the taker offers marketable securities as collateral, which are liquidated in the event of default (hence the market collateral). At the end of the term, the taker returns the capital and pays the accrued interest to the underwriter. The most common terms for sureties are 1, 7, and 30 days, and interest rates range from 86% to 90% TNA.

Fintechs

Extra-bank apps through their remunerated accounts have become a good alternative for most Argentines. Applications such as Mercado Pago, Ualá, Personal Pay, Prex and Naranja X provide an option to place your holdings in a fund, in order to obtain a rate from daily balances.

Recently, after the payment of the first bonus of 2023, on Monday, July 3, the BIND Common Investment Fund offered through Mercado Pago, became the largest money market fund in the country for retail investors. It is the fund with the largest number of people, and now, with the largest volume, exceeding $367 billion under management. In the previous 30 days, that fund paid an annual nominal 81.2% for placing money. In fact, it is a common money market fund like any other, but it has a striking difference: redemptions and subscriptions can be made at any time, on any day (working or not).

Uala, through Ualintec, offers its own mutual money market investment fund that yielded, in the last 30 days, 82.91% annual nominal. Orange X, another example, offers an interest-bearing account instead of a mutual fund, and is paying a nominal 78% annual rate. All yields that help reduce the effect of inflation on daily balances.