Thanks to its multiple instruments, it is possible to obtain a higher return than in traditional banking.
By Danielis Fermín
El Inmobiliario
The couple, José and María (fictitious names), decided to plan ahead to buy their first home so they could get married. They are both excited to move forward with the process of building their home.
While researching savings options, José told María about investment funds. “I’ve read that they’re a good way to grow our savings in the long term,” he explained. María nodded, her face hopeful. The couple agreed that, although they had saved, they needed a strategy to help them reach their goal more quickly and securely.
Having made their decision, they decided to talk to their friend, the economist Francisco Tavárez, to get more information on the subject. María, without hesitation, asked him about the state of the stock market in the country.
“It has evolved dynamically in recent years. We are facing a constantly expanding market that offers more attractive profitability and financial performance opportunities than traditional banking savings models,” the specialist explained.
Francisco Tavárez. (External source)
While José and María listened attentively, Tavárez spoke to them about investment funds, explaining that "they are entities that pool money from several people to invest in a wide range of financial instruments.".
He listed the advantages of allocating capital to them, highlighting investment diversification as one of the main ones: “Investment can be made in different instruments such as bonds, stocks and projects in varied economic sectors: tourism, energy, trusts, real estate, among others.”.
“Another benefit is accessibility, as it allows for investments without amount limitations and without commissions for each transaction,” he stated, adding emphatically that “the security of the system is guaranteed, since the funds are regulated by the Superintendency of the Securities Market.”.
“What you’re saying sounds very interesting,” interrupted Maria, explaining that they were in the process of saving to buy their home and that she would like to know if it was a profitable option to do so through the stock market.
“Of course!” Tavárez replied, noting that “the best savings instruments currently offered are those of the stock market, considering their long-term return potential.”.
However, he specified that it is important to understand how they work, their nature and the types of investment instruments, in order to be well informed and make the best possible decisions according to your risk profile, goals and liquidity.
“The best savings or investment instruments depend on medium- and long-term goals. A bond issued by the Ministry of Finance or the Central Bank could be a good option if you're looking for predictable returns over a specific period,” he said.
In addition, he recommended evaluating equity investments, such as stocks, if they are looking for something more dynamic and dependent on the business management of the issuer of the acquired stock.
“Currently, I believe they are better financial options than a savings account, a financial certificate, or any other instrument in the traditional financial market,” he concluded.
Their answers were precise and enlightening for José and María, who wanted to continue saving, but intelligently, so they could "marry their house" as soon as possible.
Photo: Canva
Article originally published in the 9th edition of El Inmobiliario print magazine.
