Common funds: how to rebuild your portfolio to protect yourself from the rise in the dollar and inflation?

Common funds: how to rebuild your portfolio to protect yourself from the rise in the dollar and inflation?

The devaluation of dollar led to 12% inflation in August, leaving behind a statistical drag for the September number. In this framework, many savers are already rebuilding their portfolios for October, seeking coverage for both the dollar and inflation. But what are the best options in Mutual Investment Funds?

In principle, it must be taken into account that September has not been a positive month for Common Investment Funds (FCI) nor for assets in general. According to PPI in a recent report, although the rate increase post PASO reflected an improvement in the performance of the inflation coverage, the rest of the funds with market risk suffered from the impact of greater volatility; and the local assets that are moving, until now and in general, in the red.

According to the report, the situation will have its sensitivity on the FCIs both in flows and yields.

FCI: everything you need to take into account

  • The market sees that the possibilities of devaluation They seem to be postponed but they are far from disappearing.
  • In order of preferences, “fund administrators keep DL and CER in the first two places,” says PPI. That is, coverage per dollar and inflation.

As detailed, this means that “except some new black swan, and even after the recent behavior of flows and returns, the appetite for hedging, we believe, would not fade as a trend. And it could even deepen, as we again approach an electoral date.”

How to invest in a Common Investment Fund

The Mutual funds They are packages of investments designed and managed by experts. These are portfolios made up of different types of financial assets: such as stocks, bonds and other income instruments.

When you enter a Common Investment Fund you are buying small parts of the background, these parts are called quotas. There are two basic types, according to the law, open and closed.

“The open ones are those that are subscribed and redeemed during market hours (10 a.m. to 3 p.m.) at the closing price of the value of the shares on the day of redemption or subscription. These funds are open because the amount of money invested is not fixed but varies with the money invested,” Vicien added.

“Redemption” is called the exit of the investment. Usually, rescues are credited in different periods depending on the fund in question: it can be immediately, in 24 hours or in 48 hours. In the case of the Mutual funds cerated, as there are a limited number of quotapartsa counterparty is needed to subscribe or rescue.



Among the advantages of investing in a Common Investment Fund they are found to be insurance, there is a diversification in investment and are regulated and controlled by the National Value Comission. The investor can have their money when they need it, not having to wait for a maturity period for their investment, plus they are easy to access and simple to operate.

It is also important to highlight the disadvantage that FCIs represent and that is that they imply more risk than a fixed term. The percentages of cost effectiveness of the funds are estimates, which does not imply that they are actually met to the letter, unlike the fixed deadlines where the interest is already pre-established.

How to subscribe to an FCI

It is necessary to have a Client Account which can be managed in a bank or stock broker. It is an account that has no cost and is used by the Fund Management Company to record investments; there the quotaparts.

Source: Ambito

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