6 alternativas a los fondos garantizados
Posted: Thu Dec 12, 2024 3:08 am
Guaranteed investment funds are one of the instruments for the most conservative investors. Their most important feature is that they guarantee the total or partial return of the initial investment on a specific date, in exchange for the payment of an additional guarantee compared to other products. But, do you know that there are alternatives to guaranteed funds?
However, the yields on these types of products are also among the lowest of all the options available . According to data from Inverco , the yield on guaranteed equity investment funds barely reaches 0.5% APR, weighed down by the costs of the guarantees that these types of products require to guarantee the capital of their participants. And this, in a period of high inflation, means giving up a certain purchasing power of money.
Fortunately, there are some alternatives for the most conservative savers to obtain returns above 0% and equivalent to the value of inflation. Below, we explain some of the most common ones.
Table of Contents
Absolute return funds
Conservative investment funds and money market funds
Fixed-term deposits and remunerated accounts
Savings insurance
Public and private debt
Robo Advisors
Absolute return funds
One of the alternatives to guaranteed funds is absolute return funds. These funds are intended to preserve capital, although they do not guarantee the total or partial return of the capital.
Their goal is to obtain positive returns at all times, for which they invest in a combination of assets that, taken together, reduce the volatility of the portfolio as much as possible.
Absolute return funds tend to perform more positively in bearish market phases, so in situations where both equity and fixed income fall, it is likely that a fund of this type will be in the positive and offset the losses.
Over ten years, absolute return funds obtain an annual return of 1.92%, according to data from Inverco.
SRI ETF portfolios
Conservative investment funds and money market funds
The most risk-averse investor can also opt for investment funds chinese overseas asia database with a markedly conservative vocation, both money market funds and fixed-income funds, which invest in fixed-income instruments, such as sovereign bonds, in the short and medium term.
These are another alternative to guaranteed funds.
However, as with absolute return investment funds, fixed-income funds, although they are conservative instruments, do not guarantee the entirety of the investor's capital.
In fact, negative returns have become common in recent years.
Fixed-term deposits and remunerated accounts
Beyond guaranteed investment funds, there is also the option of investing in the product that is traditionally the most contracted by Spanish families: fixed-term deposits.
There are some banking offers that offer returns of more than 1% APR, and there is also the possibility of depositing savings in foreign entities, through which even higher returns can be obtained.
Fixed-term deposits and interest-bearing accounts guarantee the return of capital. But they also have an additional guarantee through the Deposit Guarantee Fund. This fund guarantees the first 100,000 euros per account holder and institution, both in Spanish institutions and in foreign banks.
Download guide Learn to invest easily
Savings insurance
Insurance companies also offer products that guarantee 100% of the capital: savings insurance.
The insured agrees to pay a periodic premium. The date below which the money cannot be redeemed is subsequently established by contract.
However, there are some options that do not expire and are completely liquid, so that the insured can withdraw their money before the insurance expires.
However, returns are also modest, rarely exceeding 1% per year.
Public and private debt
This is one of the traditional havens for conservative investors.
Public debt securities, such as bills, bonds and debentures, allow investment in government debt. Private debt, on the other hand, allows investment in large companies, so they are securities with a certain guarantee and backing.
However, these securities offer meager or even negative returns.
The latest auction of the Spanish Treasury yielded a coupon of -0.114% at 5 years, and only bonds of 10 years or more accrued positive interest.
In practice, this makes it legally impossible for individuals to invest in them.
Robo Advisors
Automated investment managers , better known as robo advisors, also allow investing in conservative assets, always based on the risk profile that each investor has defined in an initial test.
The Robo Advisor is responsible for selecting the products and instruments that are most suitable for investors with a greater aversion to risk.
One of these Robo Advisors is the one offered by inbestMe. Thanks to our low costs and assets used, we offer higher returns than traditional investment funds. We are completely independent in choosing the best assets for managing our clients' portfolios. This selection is made solely on the basis of efficiency criteria and in order to maximize profitability/risk.
However, the yields on these types of products are also among the lowest of all the options available . According to data from Inverco , the yield on guaranteed equity investment funds barely reaches 0.5% APR, weighed down by the costs of the guarantees that these types of products require to guarantee the capital of their participants. And this, in a period of high inflation, means giving up a certain purchasing power of money.
Fortunately, there are some alternatives for the most conservative savers to obtain returns above 0% and equivalent to the value of inflation. Below, we explain some of the most common ones.
Table of Contents
Absolute return funds
Conservative investment funds and money market funds
Fixed-term deposits and remunerated accounts
Savings insurance
Public and private debt
Robo Advisors
Absolute return funds
One of the alternatives to guaranteed funds is absolute return funds. These funds are intended to preserve capital, although they do not guarantee the total or partial return of the capital.
Their goal is to obtain positive returns at all times, for which they invest in a combination of assets that, taken together, reduce the volatility of the portfolio as much as possible.
Absolute return funds tend to perform more positively in bearish market phases, so in situations where both equity and fixed income fall, it is likely that a fund of this type will be in the positive and offset the losses.
Over ten years, absolute return funds obtain an annual return of 1.92%, according to data from Inverco.
SRI ETF portfolios
Conservative investment funds and money market funds
The most risk-averse investor can also opt for investment funds chinese overseas asia database with a markedly conservative vocation, both money market funds and fixed-income funds, which invest in fixed-income instruments, such as sovereign bonds, in the short and medium term.
These are another alternative to guaranteed funds.
However, as with absolute return investment funds, fixed-income funds, although they are conservative instruments, do not guarantee the entirety of the investor's capital.
In fact, negative returns have become common in recent years.
Fixed-term deposits and remunerated accounts
Beyond guaranteed investment funds, there is also the option of investing in the product that is traditionally the most contracted by Spanish families: fixed-term deposits.
There are some banking offers that offer returns of more than 1% APR, and there is also the possibility of depositing savings in foreign entities, through which even higher returns can be obtained.
Fixed-term deposits and interest-bearing accounts guarantee the return of capital. But they also have an additional guarantee through the Deposit Guarantee Fund. This fund guarantees the first 100,000 euros per account holder and institution, both in Spanish institutions and in foreign banks.
Download guide Learn to invest easily
Savings insurance
Insurance companies also offer products that guarantee 100% of the capital: savings insurance.
The insured agrees to pay a periodic premium. The date below which the money cannot be redeemed is subsequently established by contract.
However, there are some options that do not expire and are completely liquid, so that the insured can withdraw their money before the insurance expires.
However, returns are also modest, rarely exceeding 1% per year.
Public and private debt
This is one of the traditional havens for conservative investors.
Public debt securities, such as bills, bonds and debentures, allow investment in government debt. Private debt, on the other hand, allows investment in large companies, so they are securities with a certain guarantee and backing.
However, these securities offer meager or even negative returns.
The latest auction of the Spanish Treasury yielded a coupon of -0.114% at 5 years, and only bonds of 10 years or more accrued positive interest.
In practice, this makes it legally impossible for individuals to invest in them.
Robo Advisors
Automated investment managers , better known as robo advisors, also allow investing in conservative assets, always based on the risk profile that each investor has defined in an initial test.
The Robo Advisor is responsible for selecting the products and instruments that are most suitable for investors with a greater aversion to risk.
One of these Robo Advisors is the one offered by inbestMe. Thanks to our low costs and assets used, we offer higher returns than traditional investment funds. We are completely independent in choosing the best assets for managing our clients' portfolios. This selection is made solely on the basis of efficiency criteria and in order to maximize profitability/risk.