Investment funds, in their myriad forms, are among the most popular products for small and medium-sized investors . This is a consequence of the flight of capital from people who had their savings in bank deposits. Following the European Central Bank's (ECB) decision to drastically reduce interest rates to virtually zero, these funds have shifted their savings towards investment funds.
To confirm this, the latest data provided by the Spanish Association of Collective Investment Institutions (Inverco) shows that the volume of assets in pension funds reached a new all-time high in recent months. Investment funds, together with pensions and insurance, now represent almost 60% of Spanish households' portfolios. The wide variety of investment options available helps explain this shift in Spanish savings.
But if there's one feature that benefits the many thousands of Spaniards who have their savings in these financial products, it's the ease with which they can transfer them , with significant advantages. They can even benefit from not paying taxes at any time they deem appropriate, and of course, in a legal and completely transparent manner, as you will see in this information.
How to transfer investment funds?
This savings and investment product can be transferred to other funds at any time. But the most interesting thing for you is that the transfer won't cost you a single euro , nor will it be subject to any fees or other management charges. Of course, this applies as long as you carry it out within the same financial institution. And you can even take advantage of the many offers they have for subscribing to or maintaining these products in your investment portfolio.
You can transfer your funds to other funds of any type, from an equity fund to a mixed fund , or vice versa; there are no restrictions on these kinds of transfers. The portfolio owner can make these transfers as often as they wish. Simply send the order to the bank where you hold your securities account. This can even be done online if your bank offers this service, conveniently from home, at any time of day.
It is an operation that is very convenient when, for any reason, you are not comfortable with a contracted investment fund. Well because it does not evolve as you would have liked, it is not the best model to focus investment at that precise moment, or its profitability is simply not the most satisfactory for your expectations as a small investor. It will be the right time to move the portfolio through the steps between mutual funds.
Formalize the operation
It doesn't matter if the funds come from different asset managers, as the only requirement for submitting the transaction is that they belong to the same account holder, regardless of their composition or the amount of contributions made. This is a highly advisable transaction to perform periodically to keep your portfolio updated with the best products for each situation, especially given the changing international economic landscape. Holding a fund in your portfolio statically for an extended period is a serious mistake that can cost account holders a significant amount of money.
Depending on the new situations that arise, you can adjust your investment to suit your needs. Don't hesitate to do so to improve the performance of your savings invested in investment funds. However, it's not advisable to change them frequently . These products are not designed for the short term, but rather for longer investment periods, typically between 3 and 6 years.
Your tax advantages
There's a very beneficial strategy you can use regularly. It involves saving on immediate tax payments . This can be achieved through these transactions, specifically, the transfer of investment funds. Instead of paying these taxes through sales, you can defer payment by transferring them to another investment product. You can even wait for taxes to decrease before finalizing the sales.
This is a legal loophole used by many investors to avoid making these payments immediately . Other investment products (exchange-traded funds, warrants, derivatives, short selling, etc.) lack this feature. Therefore, it's a very advantageous operation that you can use at any time, without any restrictions. It's like a savings account, similar to the money-saving plans offered by financial institutions.
Situations in which you must make transfers
There are always more opportune moments to execute these orders, and it is really convenient that you know them to optimize the operations according to your interests. And that can be selected in the following moments in which we are going to expose you the conformity of the transfers between the funds.
- You have made a mistake choosing the investment models, and you have realized it. You will be faced with the opportunity to rectify and opt for other investment formats more appropriate to the new situation.
- Its evolution in the financial markets is not the one initially proposed, and even instead of being with capital gains, you may even be losing part of the invested capital.
- Before a change in the environment of international economic activity, that needs a variation in the financial assets that are part of your investment proposal. Counting even on the advice of the bank itself.
- After spending several years in the same investment fund, it will be time to change it for another that responds to your expectations, and in this way start a new cycle in this class of financial products.
- As a strategy for diversify the investment through different savings formats: fixed income, variable, mixed, alternative, with protected currency, etc. It will be a very cost effective way to protect your savings more safely.
- Depending on the investor profile that you are presenting at any time, and that it does not have to be always the same. It may vary depending on many variables that condition your personal accounts.
- Before any sudden movement that is generated in the fixed or variable income markets. And that will be the trigger to turn the investment portfolio around at that precise moment, whatever its nature and composition.
Offers to carry out transfers
You can also benefit from the countless offers and promotions that financial institutions run to attract customer deposits, some of them quite aggressive. One of the most advantageous for you as a customer and investor comes from transferring funds to other institutions. Many banks reward new customers with cash for transferring funds from other banks.
This can be a very interesting option if you're thinking of switching banks, or if you're simply looking for a way to make these changes. You won't have to do a thing ; the bank itself will handle all the administrative procedures to formalize this swap between your investment funds. You won't have to pay any fees or other administrative costs.
If you are decided to carry out this operation, you will have no choice but to analyze the bank offer, and opt for the models that bring the greatest advantages. Knowing that it will not alter the nature of your investment, and not even the contributions made. You will continue with the same investment, but in a different bank. That is the only difference you will notice when you formalize the transfer between the funds.
What goals do you achieve with transfers?
Through these simple banking movements, you will be able to obtain a series of advantages that you would not obtain through other channels of action. And that will depend a lot on the objectives you set for yourself when subscribing this kind of financial products. Although in general, these will be some of the contributions that you will quickly notice.
- You can adapt to any economic cycle, even to the most adverse situations in the economic scenario. And all this without the need to leave these formats that are investment funds.
- It will involve a radical turn to your approaches investors, from the profile you present and adapted to all kinds of circumstances. Without the need to lose money along the way since there will be no liquidations of operations.
- You will be in a position to remedy any deficiencies in your investment portfolio, and that can weigh down your assets during the coming months. You will be the one who directs the strategy to make the savings profitable.
- They are operations very easy to do, and that in a few minutes can be processed. Although you will have to wait a few days just to see how the shares of the new titles are already listed on the financial markets.
- You will have time to analyze the offer of the managers, and verify which are the most suitable investment funds for you, to improve your ability to grow savings. Even with the help of professionals in this field of investment.
- And finally, a very clear opportunity that you have to revitalize your savings in the face of new changes that the economy is experiencing, both domestically and internationally. Designing a savings model tailored to you, and depending on the needs you have.