If you are thinking of getting more out of your savings, you already know that you should invest them and that you have many options to choose from. Therefore, this time we are going to talk to you about the profitability of investment funds , so that you know this product better and can decide if it is the most suitable for you.
What are investment funds?
The funds are Collective Investment Institutions that pool the contributions made by different people and invest them in turn in various investment products, including shares, fixed income securities , etc.
The good thing about this system is that it allows you to put your money in products that you would not normally have access to because it requires a very high investment. However, you can enter a fund without having too much money saved and get it to be invested in all kinds of products.
- Participant : is the investor.
- Management company : entity in charge of investing the capital
- Custodian entity : it is the one who guards the fund’s assets and controls the activity of the manager.
How does an investment fund work?
Now that you know what it is, you need to know exactly how it works in order to decide if this product interests you or not.
As an investor, all you have to do is choose the investment fund in which you want to put your money. To do this, you must know the profitability of investment funds and take into account the associated fees and expenses.