What the net asset value of investment funds is

Discovers one of the key concepts for know the yield of your investment.
In the majority of the occasions invest entails a certain uncertainty and risks. In the case of the investment funds, despite the fact that the management delegates in professionals, always is convenient know some basic concepts. This way, if want make good use of major advantages of this product financial, follows reading for understand the relationship among investment funds and net asset value .
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How does an investment fund work?

The investment funds are Institutions of Collective Investment (CII), that combine the contributions of several investors and manage this assets as a whole. To the investors of a fund them knows as participants, and each of the units in which divides the assets denominates share. However, the participants not buy shares as happens with the stock in the stock exchange, but invest the amount that consider appropriate and, from this amount, receive the number of corresponding shares.

The management of the assets of the fund is entrusted to the managing entity , whereas the custody of the titles is function of the depositorycompany, that also sees to supervise to the managing entity. Both companies, although can belong to the same group, owe be independent. The managing entity, on the other hand, manage different funds conforming to the investment policy of each one of them, that determines in what type of assets, companies and geographic areas can carry out your investments and, all in all, which is the risk profile of the fund. This way, the participants can assess the risk of each investment fund and choose the one which more adapts to your needs.

In what consists the net asset value of an investment fund?

The net asset value represents the value or price of each share of an investment fund in a moment specific. Generally, the managing entity calculates and publishes this value daily, except for in the case of some special funds that for your nature require that calculates with different frequency. The net asset value not is another thing that the division of the total assets of the fund among the number of participants with which this account at the time. Is, therefore, a calculation net, given that in the assets of the fund discounts daily the proportional part of the fees that bears the fund.

When a new participant invests in a fund, what is usual is that not knows the number of shares that goes to obtain with your investment until calculates the net asset value at the end of the day. The investment funds publish this information to a time determined, depending on the markets in which invest. These details can consult on the internet on the website of the managing entity, or in the bulletins of the stock exchanges of values.

For what is useful know the net asset value of an investment fund?

The net asset value of an investment fund is an information relevant, since allows know at all times the updated value of the investment made. Is a detail that offers information on the return of fund and the evolution of the investment by contrast with the values previous. In other words, is useful so that the participant can know if is winning or losing money with your investment. On the other hand, also is of major profit for carry out a periodical tracking of the investment. The net asset value is at the back what the quote to the stock. The final result of the investment depend on the net asset value of sale and of the net asset value of purchase, in the event of have had an only subscription, or the net asset value means of acquisition, in the event of have had several contributions.
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Other factors to take into account

Although the net asset value gives a very valuable information when invest, not is the only information to consider if wants carry out an investment profitable. There are other factors of major importance that can be determiners for many investors.

Besides know the investment policy of the fund, the future participant must conscious being of your own risk profile and determine clearly which is the time horizon of your investment. Before a time horizon reduced owes avoid assume risks. Time horizons wide invite to assume risks in looks for of a profitability superior. Another of the questions that owe analyze the investors is the minimum amount initial (IMI) of the fund, that is the minimum amount necessary to carry out the first contribution. All investor owes study in depth also the document of Basic Data for the Investor (DFI) of each investment fund. This includes information relating to the questions previous, as well as details on fees and other factors that can affect the return of fund.

Now already know more details on the investment funds and the relevance of your net asset value. In BBVA put at your disposal all the necessary information so that choose the investment fund that more adapts to your needs. You offer a wide range of investment funds with conditions according to all kind of investors. Visit bbva.es or any BBVA branch for know all your characteristics.

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