As granny used to say, “Don’t put all your eggs in one basket”. Diversification is an important issue for every investment portfolio. To diversify means to invest our wealth in different instruments, which significantly reduces risks associated to instruments individually. In addition, it is the best way to maximize results and minimize risks in the long term.
To diversify means to keep the proper mixture of different types of financial instruments (different markets, different terms, different currencies, etc.)
What’s an Investment Fund?
Investment Companies or Investment Funds were created to channel savings of small and medium-size investors into the securities market (money and capitals). In other words, an Investment Fund is an instrument whereby different investors with common objectives join their resources to be managed by a professional team to be invested in different financial markets.
What are the advantages of investing in a Fund?
Yields: by joining the different investors’ capitals, access to instruments with more benefits related to rates and terms.
Diversification: investment in a fund is performed through an investment basket, that is to say, all resources of a fund are invested in different instruments and different terms.
Liquidity: the option to select the fund according to capital availability. Some funds offer money availability day by day.
Professional Management: to invest in funds guarantees to have a group of specialists available to advice you. They are constantly looking for opportunities within the financial markets to maximize your yields.