Analysis: performance of guaranteed funds
As the name implies, guaranteed funds guarantee all or part of the capital invested, as well as a fixed return over a certain period of time. This performance is generally linked to the performance of a benchmark stock market index, but which guaranteed funds offer the best performance?
Guaranteed fixed-income mutual funds can be a good option for investors who are happy with a moderate return in exchange for not having any surprises and not losing the money they have invested. On the other hand, equity or partial equity funds offer a good balance between security and return.
In guaranteed equity investment funds we have to look at long-term performance, as it is difficult for a fund to consistently repeat the top places year after year. Even so, we have to bear in mind that an investment fund may charge different fees for the different classes of units it issues. Subscription, redemption, and management fees can have a significant impact and drastically reduce its overall performance.
Most guaranteed funds have a high subscription fee of up to 5%. This means that just by buying the fund you lose 5% of the money invested. In addition, most have a redemption fee that has to be paid when the fund is sold in order to recover the capital. Management fees are not usually high, especially in fixed-income funds, or in automated managers and digital platforms that, with the help of mathematical algorithms, invest the client’s money in a way that does not require a human manager.
In the comparison table below, we compile some of the most outstanding guaranteed equity funds in the Spanish market. These are funds that do not guarantee future returns. Therefore, the comparative table that we show you is a compilation of the returns of the last few years, but not of future returns. Is it possible to achieve good guaranteed returns over 1, 3, 5, 10, or 30 years? If you want to know more about superior options to make your money profitable, go to Guaranteed Funds. At 11Onze Recomana we offer you the best existing options.
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