What are mutual funds and how much can you invest in?

The mutual funds are the savings of thousands of people as you seek to carry potential profitability. How does it work? The money of all the participants is invested -in charge of financial experts- in stocks, bonds and / or certificates of deposit in the stock market.

Although mutual funds are made up of the savings of several people, not all members want to invest in the same assets or with the same risk exposure; therefore, depending on your investor profile, you should choose a type of fund (conservative, moderate or risky).

What assets should you invest in?

“That is the typical question. One has to see what their investment horizon is and see what I invest for and when I want to get as a result. If the answer is that I am investing in a horizon of one year to pay for a child’s master’s degree, there is a portfolio designed to meet those characteristics. If the answer is that you are investing for my son’s university 15 years from now, there will be another composition, ” Rafael Buckley , general manager of Fondos Sura , told gestion.pe .

“What interests us more than knowing what is the asset that is in fashion this year, what we see is how I mix the assets that we manage to meet the expectations of profitability of customers (…) Many say that they are going to deposits [in installments] because they cannot take risk, but there are also risks in deposits, not investing is also a risk. What must be taken into account is that I have to generate a higher return on inflation, otherwise I am losing value in my investments, “he added.

From how much can I invest? More information in the video at the top.

Steps to invest
1. The first thing to do is find your investor profile.
2. Find out what kind of portfolio is the one that best fits your expectations.
3. Open the account
4. Deposit your money

Keep in mind that you can request the redemption of your money at any time, however you should take into account that there are penalties for early withdrawal according to the terms required by each fund. After you have completed the minimum period of permanence in the account, you will not be charged any redemption fee .

It should be noted that mutual funds have the supervision of the Superintendence of the Stock Market (SMV).