Much is said that people do not know where to invest their money, or that they are afraid of making bad decisions when deciding where to deposit their resources. The great challenge for the investment fund industry has been for the population to clearly understand that this type of instrument is a real option for everyone. Currently there is a great diffusion of investment funds and in the market there is a wide offer of these, so it is imperative to know a little more about the subject to support your understanding.
An investment fund is an investment alternative, in which the resources (money) of several people are brought together and is managed by a qualified manager such as financial institutions in order to obtain a return. It is also important to note that they are supervised and monitored by a regulatory entity, which is the National Banking and Securities Commission (CNBV).
It should be noted that the investment fund industry has made a great effort to bring this type of instrument closer to the entire population with the use of technology, through digital platforms, which have facilitated the dissemination of information and simplified the contracting steps. .
Through the digital platforms, the application is downloaded to the cell phone and with a short process to profile the client according to their acceptance of risk and their personal characteristics, it is concluded with the opening of a contract. The other great effort is that the amounts to invest are becoming more accessible. For example, there are minimums from $50 pesos and you can buy and sell from your cell phone.
There is a wide variety of funds classified in a very general way by the values in which they invest, for example, there are those that do so in debt of the Federal Government, companies and banks, those that invest in shares of Mexican companies or international companies and also there are more sophisticated products where a mixed composition of different values is made.
The growth potential can be observed with the indicator of the sum of the assets managed by investment funds in relation to the Gross Domestic Product (GDP), in the case of Mexico, it is only 10% of GDP (as of June 2022 , the Funds industry was worth 2.8 trillion pesos), while in the case of Brazil the participation of the Funds industry is much more representative, with 60% of GDP and in Chile with 20% of GDP.
The transparency of information is extremely important for the industry to continue growing. Communication about the investment objective, the risks associated with each type of investment fund and the returns obtained are a key factor so that clients who want to invest and those who have already invested their money can have a better understanding and clarity of How are your resources managed?
We live in a time where technology has made it easier to make the opportunity to invest available to everyone, as well as offer equal conditions. In addition to this, the specialized advice offered by financial institutions and the financial education work provided by the banking sector in Mexico help to promote with transparency the understanding of the information available so that the population knows in greater detail the investment options that exist. and how to do it.
Investing helps to have a better relationship with personal finances, as well as to establish and achieve goals in the term that is desired.
*Elizabeth Barrera Aguilar is VP Analysis and Information – BBVA Asset Management.
e-mail: [email protected]
