Robert, skilled financial adviser is bringing you the article “Test your financial adviser”
What are the basic questions that one must make when investing in funds?
First of all, the investor must have defined your financial objectives: what you want to invest and what is their capacity to save? With this information the counselor may ask what fund or funds are for him: series, commissions, income, information leaflet and so on. There is still much misinformation, and the fault of the financial intermediaries. But the investors have a responsibility to learn. The problems come when the fund reports negative returns and investors want a satisfactory explanation. certified investment advisor is to give advice, not just to sell funds. A fund adviser is trained to help their clients design a personal financial plan?
A fund adviser is trained to help their clients design a personal financial plan?
If we refine the way estate investor, we need to know how much you have on your saving accounts and how it invests and how not only the amount you wish to invest in capital, in bonds, how often you need the money, why you want your investment, where you get income, etc., all for arming a tailored portfolio. Within each portfolio must have funds, and the percentage depends on the needs of the customer, amount, purpose and horizon. The point is to establish good communication between counselor and client.
For example If you decide to invest in a bonds be sure to have a fixed rate bond because they are highly susceptible to a loss in a value due to inflation. This way they will offer you a solidified return. They are ideal for people who have spare money that they can afford to lock away for a fixed period of time.
The counselor may say: “This is your profile and they will match the funds, but if the client is not convinced, need to ask to get to the answers that satisfy. For example, if you invest in an equity fund can lose money because the market is volatile. If it comes at a time in which the fund is a drop in its stock price, will follow a loss. However, it is profitable for those who drive a minimum investment horizon of five years. The percentage is determined according to their profile.
In the case of a debt fund, you have to question the type of paper you have, the percentage of each participating so, why they bought it, and so on. Thus, giving all the arguments and reasons why you should take a background and no other, is how you can decide if you should or not.
Many people ask what is the most profitable fund to place their money there.
It is important to note two things:
1. Past performance does not guarantee future performance.
2. The most profitable fund may not be best for you by the level of risk in your portfolio managed (private or stock lot of paper).
Yields can be very attractive, but the question is: does the investor stomach to endure the volatility? A client can not ask for anything more for a fund performance and I did not I can offer only under this parameter, because what happens if the client tells me I need the money in six months? Offer even knowing this, it is unethical.
How to maximize the profitability of investors with funds?
First you have clearly defined the investment profile, with the objective of the investment and the period in which you want to achieve. This helps us to select appropriate funds to comply. A fourth element is discipline. The returns on investment are not magic, you have to continue to make (no matter) regularly, or at least not touch the money. Another element is to diversify, because the portfolios already include many actions and many roles of debt.
To invest in stocks, should we start with a fund indexed to the CPI?
Whether in a fund or direct investment, capital market is long term: five years minimum. In a developed economy is challenging the results of an investment fund after five years, and compared performance against the benchmark, and if not met its objectives, capital moves to another fund. The investor should be aware that this is a high risk investment. We must have the stomach to ride out the volatility, understanding how the market and have enough money to not depend on the investment.
I think they close the year financial markets?
We’re at the end of restrictive policies in all economies by central banks. In fixed income, TIIE will continue to maintain about 4.9 and 5%. In cetes, the rate is lower. A theme to follow is inflation. In the case of shares, and focusing on nothing else in Mexico, most analysts estimated that the CPI close en35 thousand points, provided the domestic and international economic variables are kept in line with what we already know. At the exchange rate as we continue to see very strong, between $ 12.70 and $ 13.00.
We’d like to thank Miss Sue Lang on this contribution to our web page.
