High levels of inflation make money lose value, and a lot. It does not matter if it is a lot or a little, if you are a private investor or a company, with the capital market you can manage money flows efficiently. We tell you all the alternatives available to place money for short terms.
What are Bonds?
They are instruments similar to fixed terms, but with shorter terms (between 1 and 120 days). They are guaranteed by the market. Two parties are involved in any surety: an underwriter (the investor) and a taker (who needs money). The underwriter lends money to the borrower for a certain term, at an interest rate, while the borrower borrows money and delivers marketable securities as collateral that are liquidated in the event of default (hence the market guarantee). At maturity, the taker returns the capital and pays the accrued interest to the underwriter. The most frequently traded terms are 1, 7 and 30 days. The rates are between 86 and 90% TNA.
What are money market mutual funds?
They are the immediate liquidity funds called “T+0”. The objective is to invest in assets that give some interest, but always prioritizing liquidity, minimizing volatility. They generally invest in fixed terms (traditional and pre-cancellable), sureties, remunerated accounts, other funds. They are stable, since they do not invest in assets listed on the stock market (which are the volatile ones) and they accrue interest daily. They are ideal for periods of less than 15-20 days. In the last month they yielded close to 8% and in the last year 85%.
What are AHORRO mutual funds?
Similar to the above, but incorporate publicly traded short treasury bills. Their objective is to appreciate the capital by investing in short-term fixed-income instruments, reaching a rate of return higher than the fixed term for wholesalers (BADLAR rate). Although they are quite calm, since they have securities that are listed on the stock market daily and these are volatile, that variability is partially transferred to the fund. Liquidity is 24 hours. They are ideal for periods between 20 and 30 days or for those who want to be liquid, earn something more. In the last month they yielded 7.5% and in the last year 102%.
What are Inflation Linked Mutual Funds?
The main objective is to beat inflation, with a medium-term investment term (at least a couple of months). They invest in UVA or CER fixed income assets, whether private or treasury. Availability 48 hours. In the last month they yielded 8.9% and in the last year 121%. If you are looking to protect your capital for a short period, it is the one indicated.
What are dollar linked mutual funds?
They seek yields similar to or higher than the variation in the official exchange rate in the medium term. They invest in fixed income assets that adjust against official FX or dollar linked synthetics. They have liquidity of 48 hours. In June they yielded 8.64% and in the last year 130%. They are ideal for those who expect an honesty of the value of the official dollar, but in a longer term.
Leaving what is liquidity management and thinking in longer periods, the investment alternatives are endless. Continuing with the line of mutual funds, there are some that only buy corporate assets, so they are useful for those seeking to escape sovereign risk, and there are others that only invest in local stocks, in search of higher profits, and of course, risking more.
It is worth clarifying that a common investment fund is a heritage made up of contributions from people who have similar profitability objectives and risk profiles. They are managed by professionals, who seek the highest return, investing in different instruments (bonds, shares, ONs, fixed terms, depending on the objective of the fund, which is known in advance and can be consulted in what is called the factsheet).
A great advantage is that they are well diversified and any investor with little money can access this portfolio. When joining the FCI, shares are subscribed, whose values vary daily. When the investor wishes to withdraw, he only has to redeem these quotas. There is always the possibility of withdrawing when you want, not like the Fixed Term, which pays good interest, but the minimum stay is 30 days. All money sent or redeemed to an FCI account is exempt from debit/credit tax.
These alternatives are not exclusive only for companies since any individual can do them. It is common for an employee who receives his salary at the beginning of the month to subscribe to an FCI and redeem the money as he has to meet his expenses.
Source: Ambito
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