Mutual funds are a modern way to monetize or increase our savings. Besides, it offers us the possibility of generating impressive returns for the investments that are made without sacrificing the availability of our money.
If you are thinking of opening a mutual fund, it is essential to keep one of the leading investment premises in mind: the higher the expected return, the higher the risk must be assumed.
You think that in no way would you be willing to put your money at risk. But calm, in the world of mutual funds, that risk we are talking about is not as reckless as it sounds.
People could understand risk as if it were something terrible.
Best return mutual funds being an investmenthave certain levels of volatility. That is, a return cannot be guaranteed stable or permanent. It is not like a term account in which the money is agreed upon at a specific rate for a particular time. So, what will performance depend on? Of the investments that are made. Now, depending on the type of funds you choose, different levels of risk are assumed, ranging from virtually zero risk funds to funds with high levels of risk.
What do we understand by risk profile?
The risk profile, mainly, is the appetite that the client has to achieve specific profitability. Now, to get that profitability you have to assume a certain level of risk. We can segment clients into three main groups: conservative, moderate and aggressive. Each of these profiles that I mentioned above encompasses different types of funds.
What characterizes each profile?
Conservatives, mainly, seek to invest in the short term. That is, up to a maximum of six months. And they find, above all things, to preserve their capital (not lose their money) to profitability according to their expectations and also providing them with availability.
Moderates have a medium-term investment horizon, which ranges from six months to three years. They are willing to assume certain levels of volatility to achieve higher profitability.
Aggressive customers, on the other hand, are those who seek to achieve higher returns. They have a long-term investment horizon, more significant than three years. They are willing to assume high levels of volatility to meet their expectation of profitability.
How to know which profile I fit?
To know your risk profile, you have to be able to answer two questions. The first is when you will need your money? And, the second, what level of volatility are you willing to assume to achieve specific profitability? In fact, we also provide a tool, which you can find on our website, it is a profiler that will help you find your risk profile.
Does each profile have any minimum amount of investment?
We have different minimum opening amounts depending on the type of fund, ranging from 500 soles to more. Now, we, for any investment in funds, suggest slightly more massive amounts. We speak between 5 thousand and 10 thousand soles, approximately. In this way, we can generate greater diversification, open several best performing mutual funds and create a portfolio. That increases the chances of making better returns.