Mutual funds, also called Mutual funds or FCI for its acronym in Spanish, are funds of several investors that are united under the same institution in order to invest in several financial products. The investors, called participants in the fund, can be natural or legal persons, and the responsibility of The investments are left in the hands of a management company, which can be a financial institution or a Bank.
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The value of mutual funds
Each of the mutual funds has a certain value, calculated based on the total investment and the corresponding percentage that each participant has invested, the The value of the funds may vary daily depending on the number of total holdings or changes in the total equity of the funds. money.
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However, the real value of the funds is only effective at the time of sale, depending on the type of contract. signed and the conditions of this, the participant can sell the funds at the time he wishes or at the time set by the contract.
Types of Mutual Funds
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The mutual funds They are divided into various types, this division attends to their profitability:
Funds relative performanceThey are traditional funds and involve lower risk, the commissions are lower, but they are also less profitable. These types of funds are usually specialized in a specific sector.
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The funds of absolute performance they have a much higher value than the relative ones, but also their purchase price is much higher. These types of funds are more risky, and they use all kinds of financial techniques in search of the highest profitability in the shortest time.
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Thanks to mutual funds You can invest in several financial products, in a way that reduces the risk of losses, therefore, it could be said that it is a diversified investment but with a lower risk of losses. When investing in mutual funds, especially if you are not very knowledgeable about investing, it is important to seek the advice and advice of a trusted financial institution.
