In the midst of the fintech boom and one-click investments, young people from the age of 13 can now operate with Common Investment Funds (FCI), as recently established by the Central Bank.
The regulations establish that banks may offer a savings account for minors and that they may be used to make debits and credits associated with the subscription and collection of shares of “Money Market” Open Investment Funds.
The CNV considers that this measure is pertinent to promote participation in the capital market, favor national savings and their channeling towards productive development, and strengthen protection mechanisms and prevention of abuses against investors.
Within this framework, we give you a guide to start allocating the first savings:
How to invest in FCI from the age of 13?
- Modality through the internet, with authorization of the legal representative: In this case, the minor adolescent may place share subscription orders through an online placement system. To do this, she must have a bank account identified with a Uniform Bank Code (CBU) or payment account with a Uniform Virtual Code (CVU), owned by the minor, which is linked to the bank account of the legal representative.
- Modality without intervention of legal representatives, with funds from savings banks opened in the BCRA: In this case, the minor adolescent may subscribe shares with the funds from a savings account opened at the BCRA, without the intervention of his legal representatives. The maximum subscription amount will be that established by the Central Bank (BCRA).
In both cases, the CNV establishes a series of requirements and protection measures to ensure thatMinors understand the risks of this type of investment.
Among the requirements are:
- Provide information about the main characteristics of the Fund and the possible risks that this type of investment represents.
- Have a mechanism that allows verification, prior to the subscription of the quotas, the confirmation of its reading.
- Offer specific access with financial education content linked to investments in Open FCIs, directed and adapted to minors in this age range.
What options are available?
The most common is through virtual wallets such as Mercado Pago, Ualá, Naranja Of course, the amount they can invest must not exceed a Minimum Living and Mobile Wage.
How do I invest in a money market? choose an application that has a virtual wallet with this option. Can do it anyone over 18 years old. It is 100% online, with no minimum stay time and money can be redeemed 24 hours a day, 365 days a year.
Offers an annual interest of 110% (9.16% monthly) but in this case it varies depending on the amount of money deposited.
It promises an annual rate of 108.5% (9% monthly).
Remunerates balances 104.7% annually, which is equivalent to a 8.73% monthly.
Offers an annual rate of 103.3% (8.60% monthly).
Offers an annual interest of 102.4% (8.5% monthly)
Mercado Libre has an annual rate of 96.5% (8.01% per month).
Teenagers can invest in a fixed term
Teenagers will be able to invest in fixed terms. For this function, the limit of the Minimum, Vital and Mobile Wage is excluded. To date, the banks that have best developed this tool for young people are Banco Nación and Banco Provincia.
Today, investing in a fixed term gives you a profit of 11% (monthly effective return – TEM) closest to the inflation figure. To calculate the fixed term, go here.
Source: Ambito
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