Mutual Funds continue to deliver double-digit returns in the Peruvian stock market, which opens an opportunity for people to manage their personal finances.
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According to the Association of Fund Administrators of Peru (AAFM), the average annual return of mutual funds in dollars, which invest in stocks, was 16.6% at the end of August, and in the case of funds in national currency it was 17.8%.
Furthermore, the association indicated that the profitability of some equity mutual funds has exceeded 20% in the last year, reflecting an outstanding performance in the market.
This same behavior is observed if the period observed is reduced to January and August of this year. The organization indicated that, in this period, the average profitability of stock mutual funds, in dollars, reached 9.4% and, in soles, it was 6.9%.
“The equity market is undergoing an upward trend and is being taken advantage of by investors. However, market agents must be aware that higher returns entail higher risks,” said Fernando Osorio, general secretary of the AAFM, which brings together the main asset managers.
The executive recalled that equity mutual funds invest exclusively in stocks and are geared towards long-term investment, due to the volatility of the market and the price of stocks, which also entail greater risk.
He added that fixed-income or debt mutual funds present less risk or volatility and invest in debt instruments such as certificates of deposit, bonds or commercial paper.
| Product | Manager | Currency | Year-to-date profitability | 12-month profitability |
| PHI RV Global Strategy Series B | Prudential SAF | Dollars | 15.11% | 22.00% |
| PHI RV Global Strategy Series A | Prudential SAF | Dollars | 14.21% | 20.48% |
| Sura FMIV Actions | Sura Funds | Suns | 7.46% | 20.06% |
| Scotia Equity Fund | Scotia Funds | Suns | 8.63% | 19.87% |
| Credicorp Capital Global Shares | Credicorp Capital | Dollars | 13.08% | 19.05% |
| Credicorp Capital Shares | Credicorp Capital | Dollars | 8.95% | 18.48% |
| Faro Capital Global Innovation- Series A | Capital Lighthouse | Dollars | 5.67% | 17.23% |
| Faro Capital Global Innovation- Series B | Capital Lighthouse | Dollars | 5.50% | 16.95% |
| Faro Capital Global Innovation- Series C | Capital Lighthouse | Dollars | 5.33% | 16.67% |
| Faro Capital Global Equity – Series A | Capital Lighthouse | Dollars | 10.65% | 14.80% |
| Faro Capital Global Equity – Series B | Capital Lighthouse | Dollars | 10.47% | 14.52% |
| Faro Capital Global Equity – Series C | Capital Lighthouse | Dollars | 10.12% | 13.97% |
| IF Shares Soles | Interfunds | Suns | 4.65% | 13.69% |
| Promoinvest Selective Fund | Promoinvest | Dollars | 4.56% | 8.92% |
Debt funds
At the level of debt funds (fixed income), Osorio indicated that returns were constant.
He said that, in the last 12 months, the average annual profitability of these products was 5.9% for soles and 5.4% for dollars.
Osorio added that debt funds continue to have the largest share, with around 70% of the industry’s assets.
He added that funds of funds (mutual funds that invest in other investment funds and mutual funds) are the most widely offered by management companies.
On the other hand, the union reported that the assets managed by mutual funds at the end of August reached S/43,312 million, a figure that implies an interannual increase of 43.32% and 5.15% compared to the previous month.
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Investors
Regarding the level of participants or investors, the AAFM stated that it reached 392,934 investors, which represents a growth of 2.34% compared to the previous month and 15.16% in the last 12 months.
“At this rate, we expect to close the year with more than 400,000 investors participating in mutual funds,” Osorio emphasized.
It should be noted that 97 percent corresponds to natural persons and the rest to legal entities.
Osorio said that as growth in the assets managed by mutual funds has been observed, there are also more options for offering products by management companies, which to date total 234 mutual funds on the market.
Data
Mutual funds are professionally managed by experts who choose the best investment opportunities and are characterized by their flexibility in investment amounts and the opportunity in which these investments can be easily made and withdrawn. There are mutual funds that allow investments from 20 soles or 5 dollars.
The entities authorized to offer investments in mutual funds are banks, financial institutions, stockbroking companies, mutual fund management companies and others authorized by the SMV.
The mutual fund managers affiliated with the AAFM are: BBVA Asset Management SAF, Credicorp Capital SAF, Fondos Sura SAF, Interfondos, and Scotia Fondos.
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