An investment fund consists of gathering contributions from a group of natural and legal persons (investors and/or contributors) to form a common heritage, which will be managed by an expert third party, allowing these investors to have access to portfolios of assets, which individually they might have limited or no access.
Said common equity would simultaneously invest in various assets such as bonds, shares, term deposits, real estate, and any other instrument permitted by law. The combination of several of these assets is what is called an investment portfolio.
The Investment Fund Manager is that expert third party who, following established guidelines and procedures, will be in charge of the management and administration of the investment portfolio, seeking to obtain the highest profitability, observing the risk levels and controlling the costs generated to the fund. , following the guidelines established in the Prospectus and in the Investment Regulations of the fund.
The investment fund is divided into equal parts called participation quotas, the quotas reflect the net value of all the assets that make up the fund. Each installment includes a proportion of the different assets that make up the fund. Each investor can buy more or less shares depending on the money he contributes. The value of the quota is variable, that is, it can increase or decrease daily due to fluctuations in the prices of the instruments that make up the fund’s investment portfolio. These fluctuations in the value of the share could positively or negatively affect your investment.
The yields obtained in the management of the fund are distributed proportionally among all the shares that comprise it. In this way, the contributors see the fruits of the management without having to spend time following the behavior of the financial markets or having to make decisions regarding the type of assets in which to invest.
At AFI Popular we offer funds for each investor profile. Those seeking higher returns must assume a higher level of risk. Each investment fund has an Informative Brochure and Internal Regulations available to the investing public, in which the conditions of its operation are stipulated, including the investment policy, which in turn determines the level of risk implicit in each product.