Operating through Common Investment Funds allows investors to achieve short, medium or long-term objectives. There are also higher and lower risk ones.
The Common Investment Funds (FCI) They are among the most used tools currently in the Argentine financial market, because they allow you to generate a daily return by simply having the money invested and with the possibility of having it available on the day, in 24 or 48 hours, depending on the fund. .
First of all, we must define what It is a Common Investment Fund. Basically It is a set of assets that make up a common asset and is made up of contributions from a group of investors who have the same profitability and accepted risk objectives..
These assets, which can be fixed terms, bonds, shares, public securities or other financial instruments) They are managed by a qualified group of professionals, either from a bank or a Settlement and Clearing Agent (Alycs).
Operating through Common Investment Funds allows investors to achieve short, medium or long term objectives. There are also higher and lower risk ones.
It is important to analyze the composition of each FCI to choose according to our risk profile and objectives, in addition to taking into account the macroeconomic context since that is what will determine the performance.
The FCI operate on the days and times in which the market is active and their performance is known at the end of the day. Profits or losses can be consulted by subscribers daily.
Types of FCI
- Liquidity Funds or Money Market: One of the options most used by savers with a conservative profile is to invest in Common Investment Funds with the possibility of redemption on the day. It is a tool whose use is constantly growing, because although it offers interest below a fixed term, it does not require immobilizing the money for 30 days.
- Bond or Fixed Income Funds: They represent a medium to long-term investment and have moderate performance and price fluctuations.
- Mixed Funds: They mix different financial assets such as bonds, shares and fixed terms. In this case, risk and return are subject to each person’s behavior.
- Stock or Variable Income Fund: They are a long-term investment since they are made up of a high volatility portfolio, mainly stocks, and therefore, they are subject to market price variations.
Source: Ambito
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