Fixed term, dollar or Common Investment Fund: what to invest in in a high inflation scenario

Fixed term, dollar or Common Investment Fund: what to invest in in a high inflation scenario

The data of August inflation two days ago, he shot himself 12.4% in the last month, which registered an acceleration of 6.1 percentage points (pp) compared to 6.3% in July and marked a record in 32 years (since March 1991). This adds to the 20% devaluation of the weight, which was determined after primary elections (PASSED).

In this framework, many people try cover your income and savings of the inflation. For this, it is important to know what benefits each option provides. That helps decide which is the most convenient in each case and in each particular context.

High inflation scenario: Is it advisable to invest in fixed terms or dollars?

In the case of fixed terms, the economist and director of C&T Asesores Economicos, Camilo Tiscorniaexplains that the main thing is compare interest rate of the fixed term versus the inflation and the Dollar purchase.

After the STEP, the central bank (BCRA) determined the rate rise of 21 percentage points for the Fixed deadlinesgoing from 97% to 118% annually. Now, after knowing the inflation data for August, a possible new change in monetary policy. However, it was learned that the rate is will remain unchanged.

Therefore, currently, by constituting a fixed term to 30 daysthe return for the saver is 9.7% monthly. But the inflation in the last month it was 12.4%. That is to say, if you invest the money in this type of instrument, after a month, you will receive a performance 3.3 percentage points lower to the percentage of liquefaction that the pesos suffer due to the inflation.

According to the Comparison of fixed terms with dollarsthe economist C&T Economic Advisors explained that “with the jump that the dollars tookin the month of August, the truth is that “The dollar has been a much more attractive investment.”.

In that same sense, “We must keep in mind that we have the elections in the middle and who lived through the elections and was in a fixed term and the dollar was devaluedhe learned that he could not do anything and lost 20% of the money“said the financial advisor Gaston Lentini.

Common Investment Funds: the investment that gains followers

The Mutual funds (FCI) are investment packages designed and managed by experts. Is about portfolios made up of different types of financial assets such as, for example, stocks, bonds and other income instruments.

“In the context of the uncertainty that exists these days, a Common Investment Fundthat gives more liquidityseems more attractive than the fixed term“, held Tiscornia.

The FCI They have the advantage of being instruments insurance that diversify the investment and are regulated and controlled by the National Value Comission. Additionally, the investor can have your money whenever you need itnot having to wait for a maturity period for your investment.

In that sense, lentini highlighted the importance of FCIs allowing recover the money invested in 48 hours. And he stated that in an electoral scenario of so much uncertainty this can allow, for example, to remain in an FCI tied to inflation until a few days before the election to, when the time comes, choose what to do with the money in the new scenario.

Source: Ambito

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