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Investment: what are investment funds and how do they work?

2019-12-31 09:41:21

We bring for you an article related to the investment and everything that the investment funds imply.

What are investment funds?

 Investment funds are nothing more than a set of stocks or bonds, which are anchored to a stock exchange or a bank, and may have one or more administrators, who have the job of choosing the titles that form the fund, these they are constituted by fixed income or bonds and variable income that are the shares, and because not mixed, there are currently many of these funds that are made up of metals, currencies, etc., any element is valid, since this is the so-called backup and it It represents an investment.

Here is an example of a equity fund or failing an action.

 Certain institution is called a bank or stock market decides to form a "basket", the person or persons dedicated to this work are able to include titles in order to achieve the objective, and make after a while you can buy and sell shares With the passage of a certain period, it is there that the commissions, supervision and administration costs are revealed, since everything has a value.

The investment fund may believe that making an investment in VOLARA, WALMART, ICA, ALFA OR AEROMEXICO, may be profitable, there are many more but we only mention these at random, the returns tend to vary and it is the investors decision to choose to buy or sell said shares, involving the administrator of said fund.

 There is another relevant detail and it is that there are investment funds, in a certain basket and this obviously contains other baskets of securities, which forms a kind of chain, it is also important to be clear that the funds that the investor buys will always remain in the hands of the administrator, because the investor does not see exactly what the investment fund contains, giving way to being a passive investor.

 Investors use methods that help them make the best decisions about any investment they are going to make, as there are channels that have the capacity to offer interesting perspectives, from which they should be seized, since it is important to have a clear study before Run a purchase or sale.

 Currently we find that many people no longer trust the fund operators, failing that the majority opt for an administrator, since the operators may have other incidents regarding the objectives of the investment, especially when it comes to investors individual, and that have a lower performance than market indices.

Thus we have bequeathed at the end of our article related to Investments, where our objective was to explain everything about investment funds in such a way that we are more comfortable giving the ideal utility to our capital.

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