Real Estate Funds: As the name suggests, they consist of investments in real estate. When the investor invests money in the modality, he becomes the owner of real estate quotas. Thus, you earn from their appreciation, which is chosen by the fund managers. For the Common Sense on Mutual Funds Keynotes this is important.

Referenced Funds

The referenced fund has a specific return objective, so 95% of assets need to be linked to this benchmark. It is considered a safe and conservative investment because it involves government bonds or private assets with low credit risk. The famous DI Funds, referenced to the CDI rate, are part of this modality.

Who is responsible for overseeing investment funds?

In our country, investment funds are regulated by the Securities Commission and the Association of Financial and Capital Markets Entities. Agencies are responsible for classifying and overseeing all investment fund activities.

Tips for Investing in a Good Fund

Finally, once you understand how mutual funds work and know the main options in the market, it’s time to find out how to choose the best fund for your goals and financial possibilities. The first step is to analyze the current financial market situation. In recent years, this country has experienced moments of high inflation, the worst recession in recent history and large doses of political instability.

After the election, the market brightened with the promise of a liberal agenda, but the time is once again uncertain, with difficulties in approving the Social Security Reform, which is considered essential to move the country back on its path to growth.

All of these factors affect financial market performance. Therefore, you need to analyze the scenario with expert help to understand if it is time to invest in bold or conservative funds, for example.

Know your goals: What do you seek to achieve?

After analyzing the scenario, it is time for self-awareness. You need to set your short, medium and long term goals to choose the most suitable investment fund. Do you want to gain financial independence and live on income in ten years? Want to raise money for kids’ college? Want to accumulate equity in more profitable options than savings? Want fast returns in no time? All of this has to do with your goals as well as your investor profile.

Identify your profile

Knowing your own investor profile is a prerequisite for choosing the right investment fund for you. To do this, you need to answer a series of questions related to the time you intend to invest and the amount of risk you can take. At the end of the process, you will find out if you have a bold, moderate or conservative profile. This will allow you to choose mutual funds that suit your personality.

Read, learn, and then begin to perform.

As much as investment fund decisions are made by financial market managers, you have to work hard to choose the best fund. For that, there is no magic solution: you need to analyze the rates, compare the performances, read the reports and contracts of each fund. Then, and put everything on paper to make sure your decision will be the best.